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SWB
SBusiness modelUpdated 2 Nov 2026

SaaS (Software as a Service)

Cloud-based software delivery model where applications are hosted and accessed online.

Definition

Software as a Service is software you host and customers access on a subscription, instead of installing a one-time licence. The model lives or dies on recurring revenue, retention, and the cost to serve each account.

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In the room

How the word shows up in a real conversation.

A clinic pays ₹1,499 a month for records in the browser. You ship updates once. That is SaaS. Selling them a CD and an AMC is not.

Common mistake

Calling any login screen SaaS. If you cannot upgrade everyone at once, you are still in the licence business.

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