Quick answer
Software as a service (SaaS) is web-based software on a subscription. The vendor hosts it. Users access it from a browser. Examples include Salesforce, Slack and WebGrow24.
What it is
SaaS is a software model where the vendor hosts the app and users access it over the internet. Users pay a recurring fee instead of buying a license. One codebase serves all customers.
Why it matters
SaaS is the dominant software model for new products. It changes how you build and how you sell.
How to use it
- Design multi-tenant from the start.
- Add subscription billing with Stripe or Paddle.
- Build analytics to track activation and retention.
- Set up SSO and audit logs for enterprise buyers.
Examples
- Salesforce, Slack, Notion, Figma, Linear and WebGrow24 are SaaS.