SaaS
/sæs/ · Abbreviation · Startup & VC · Origin: 2001
Definitions
Software as a Service — a distribution model where software is hosted centrally and accessed via subscription, rather than installed locally. You don't buy the software; you rent it forever. And they can raise the price whenever they want.
In plain English: Software you pay for monthly like a subscription instead of buying once — think Netflix for business tools. You access it through a web browser.
Etymology
- 1961
- John McCarthy predicts computing will be sold as a utility — the conceptual ancestor of SaaS
- 2001
- The term 'Software as a Service' crystallizes in industry usage, replacing earlier terms like ASP (Application Service Provider)
- 2006
- Salesforce proves the SaaS model at scale, reaching $500M in revenue and converting skeptics