<P> Software as a service (SaaS / sæs /) is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted . It is sometimes referred to as "on - demand software", and was formerly referred to as "software plus services" by Microsoft . SaaS is typically accessed by users using a thin client via a web browser . SaaS has become a common delivery model for many business applications, including office software, messaging software, payroll processing software, DBMS software, management software, CAD software, development software, gamification, virtualization, accounting, collaboration, customer relationship management (CRM), Management Information Systems (MIS), enterprise resource planning (ERP), invoicing, human resource management (HRM), talent acquisition, learning management systems, content management (CM), and service desk management . SaaS has been incorporated into the strategy of nearly all leading enterprise software companies . </P> <P> According to a Gartner Group estimate, SaaS sales in 2010 reached $10 billion . Also, 59% of all cloud workflows will be delivered as software - as - a-service by the end of the year according to Cisco's Global Cloud Index . </P> <P> SaaS applications are also known as Web - based software, on - demand software and hosted software . </P> <P> The term "Software as a Service" (SaaS) is considered to be part of the nomenclature of cloud computing, along with Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Desktop as a Service (DaaS), managed software as a service (MSaaS), mobile backend as a service (MBaaS), and information technology management as a service (ITMaaS). </P>

The use of saas to deliver applications is sometimes referred to as web apps