* [Topics](/en/topics "Topics") * [Cloud services](/en/topics/cloud-computing "Cloud services") * What is SaaS? What is SaaS? ============= Published March 25, 2022•*3*-minute read Copy URL Jump to section --------------- OverviewHow does SaaS work?The SaaS modelPaaS vs IaaS vs SaaSSaaS vendorsSaaS with Red Hat Overview -------- Software-as-a-service (SaaS) is a form of [cloud computing](/en/topics/cloud-computing) that delivers a cloud application—and all its underlying IT infrastructure and platforms—to end users through an internet browser. It can be an ideal solution for large enterprises, small businesses or individuals that: * Do not want the responsibility of buying or maintaining infrastructure, platforms, and on-premises software. * Prefers simpler cost management through operational expenses (OPEX), rather than capital expense investments (CAPEX). * Have challenges that require minimal customization to solve. * Favor software subscription models. [Learn how to boost your hybrid cloud strategy](/en/resources/hybrid-cloud-strategy-for-dummies-ebook "Hybrid cloud strategy for dummies e-book") How does SaaS work? ------------------- SaaS reduces users’ upfront costs by eliminating the need to permanently purchase software or invest in a robust on-premise [IT infrastructure](/en/topics/cloud-computing/what-is-it-infrastructure)—as is the case with traditional software. SaaS customers should invest in fast network hardware, however,since service performance is determined by internet connection speeds. Examples of SaaS include application service providers (ASPs) like Google Docs and Microsoft Office 365, as well as enterprise services that deliver human resource software, e-commerce systems, customer relationship management tools, and [integrated development environments (IDEs)](/en/topics/platform-engineering/what-is-ide). Software vendors typically choose 1—or both—of 2 common deployment models: * In their own data center, or * Through a public cloud service provider like [AWS](/en/partners/aws), [Azure](/en/partners/microsoft), or IBM Cloud, that manages the cloud environment on which the SaaS solution is hosted. SaaS applications take advantage of [multitenant](/en/topics/cloud-computing/what-is-multitenancy) architecture to isolate customer data. Software upgrades, bug fixes, and other general app maintenance are taken care of by the SaaS provider, while users interact with the software through a web browser. SaaS solutions are generally fully functional, but sometimes incorporate custom integration via [application programming interfaces (APIs)](/en/topics/api/what-are-application-programming-interfaces)—like [REST or SOAP](/en/topics/integration/whats-the-difference-between-soap-rest)—to connect to other functions. The nature of SaaS makes it easier for providers to roll out new features to their customers. Most SaaS applications are preconfigured plug-and-play products where the SaaS provider [manages](/en/topics/management) everything behind the app, including: * Hardware components, like networking, [storage](/en/topics/data-storage), and datacenter servers * Platforms, like [virtualization](/en/topics/virtualization), the operating system, and [middleware](/en/topics/middleware) * Software requirements, like runtimes, data, and the app itself Red Hat resources ----------------- [Keep reading](/en/resources "Keep reading") The SaaS model -------------- SaaS apps largely rely on [subscription models](/en/about/value-of-Red-Hat) for provisioning software licenses. Unlike a perpetual license, this software delivery model ties each account to a subscription that grants SaaS access for a period of time—usually on an annual or monthly basis. That subscription fee generally grants access to product documentation and ongoing support governed by a service level agreement (SLA), but some SaaS providers charge additional support fees to make custom code changes at the source code level. [Learn more about software subscriptions](/en/about/value-of-Red-Hat "about red hat detail | about | value of a red hat subscription") PaaS vs IaaS vs SaaS -------------------- The term *as-a-Service* generally refers to a solution that is managed by someone else so you can focus on what’s important, like iterative improvements of custom apps. In addition to SaaS, other major as-a-Service options can include Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS). [![SaaS architecture](/rhdc/managed-files/styles/wysiwyg_full_width/private/iaas-paas-saas-diagram4-1638x1046_0.png.webp?itok=tK7XWtcK)](/rhdc/managed-files/iaas-paas-saas-diagram4-1638x1046_0.png) [IaaS](/en/topics/cloud-computing/what-is-iaas) means a provider manages the infrastructure for you—the actual servers, network, virtualization, and storage—via a cloud. The user has access to the infrastructure through an API or dashboard, and the infrastructure is rented. Users manage things like the operating system, apps, and middleware while the provider provides the hardware, networking, hard drives, storage, and servers—and the provider is responsible for taking care of outages, repairs, and hardware issues. [PaaS](/en/topics/cloud-computing/what-is-paas) provides hardware and an application-software platform to users from an outside service provider. Since users handle the actual apps and data themselves, PaaS is an ideal solution for developers and programmers. PaaS gives users a platform on which to develop, run, and manage their own apps without having to build and maintain the infrastructure or environment that apps need to run. Examples of SaaS vendors ------------------------ Software vendors provide SaaS-style software applications to meet any number of business needs from basic business applications to complex [enterprise resource planning](/en/topics/linux/what-is-erp) (ERP) suites. Some SaaS companies and products include: * SAP’s enterprise resource planning (ERP) software * Paychex's human resource software * CA Technology's enterprise software * Atos messaging SaaS solution * Salesforce's customer relationship management (CRM) software * Slack’s messaging service * Microsoft Office 365 * Dropbox’s file storage service Build your SaaS with Red Hat ---------------------------- Become a SaaS vendor by participating in Red Hat SaaS Foundations-a program that helps Red Hat Partners build SaaS solutions on Red Hat platforms that can be deployed across all kinds of hybrid environments. Partners involved in this program can build applications more easily, go to market faster, and appeal to a broader range of potential customers. Or, become a SaaS user through Red Hat Cloud Services, which includes hosted and managed platforms, applications, and data services that streamline the hybrid cloud experience, reducing the operational cost and complexity of delivering cloud-native applications. Best of all, every subscription includes support. That’s advice and guidance to help you deploy, configure, and manage whatever as-a-Service Red Hat offering you use. Article IaaS vs. PaaS vs. SaaS ---------------------- “As-a-service” generally means a cloud computing service that is provided by a third party. [Read the article](/en/topics/cloud-computing/iaas-vs-paas-vs-saas "IaaS vs. PaaS vs. SaaS") All Red Hat product trials -------------------------- Our no-cost product trials help you gain hands-on experience, prepare for a certification, or assess if a product is right for your organization. [Keep reading](/en/products/trials "All Red Hat product trials") Keep reading ------------ ### What is committed spend? Committed spend is a term used in many industries to describe the value of products or services a customer agrees to purchase within a specific period of time. [Read the article](/en/topics/cloud-computing/committed-spend "article | What is committed spend?") ### What is a cloud marketplace? A cloud marketplace is an online storefront where customers can purchase software and services that easily integrate with the cloud provider’s offerings. [Read the article](/en/topics/cloud-computing/what-is-a-cloud-marketplace "article | What is a cloud marketplace?") ### What is a hyperscaler? Hyperscalers are large cloud service providers, which can provide services such as computing and storage at enterprise scale. [Read the article](/en/topics/cloud-computing/what-is-a-hyperscaler "article | what is a hyperscaler?") Cloud services resources ------------------------ ### Related content * Overview [Elements of cloud sovereignty](/en/engage/elements-of-cloud-sovereignty-overview) * Overview [Elements of cloud sovereignty](/en/resources/elements-of-cloud-sovereignty-overview) * Blog post [Bringing Red Hat AI GitOps to Microsoft Azure SQL Database](/en/blog/bringing-red-hat-ai-gitops-to-microsoft-azure-sql-database) * Analyst material [5G Core Operator Survey (2025 Edition): Scaling 5G SA](/en/engage/5g-core-operator-survey-analyst-material) ### Related articles * [Why run Linux on IBM Cloud](/en/topics/linux/linux-on-ibm-cloud) * [What is committed spend?](/en/topics/cloud-computing/committed-spend) * [What is a cloud marketplace?](/en/topics/cloud-computing/what-is-a-cloud-marketplace) * [Kubernetes on AWS: Self-Managed vs. Managed Applications Platforms](/en/topics/containers/kubernetes-on-aws) * [What is a hyperscaler?](/en/topics/cloud-computing/what-is-a-hyperscaler) * [Why choose Red Hat for cloud services?](/en/topics/cloud-computing/why-choose-red-hat-for-cloud-services) * [What are cloud service providers?](/en/topics/cloud-computing/what-are-cloud-providers) * [What is PaaS?](/en/topics/cloud-computing/what-is-paas) * [IaaS vs. PaaS vs. SaaS](/en/topics/cloud-computing/iaas-vs-paas-vs-saas) * [What are Red Hat OpenShift cloud services?](/en/technologies/cloud-computing/openshift/what-are-red-hat-openshift-cloud-services) * [What are cloud applications?](/en/topics/cloud-native-apps/what-are-cloud-applications) * [What are managed IT services?](/en/topics/cloud-computing/what-are-managed-it-services) * [What is IaaS?](/en/topics/cloud-computing/what-is-iaas) * [What are cloud services?](/en/topics/cloud-computing/what-are-cloud-services) * [What is a service broker?](/en/topics/cloud-native-apps/service-brokers) * [What is CaaS?](/en/topics/cloud-computing/what-is-caas) * [What is FaaS?](/en/topics/cloud-native-apps/what-is-faas) [More about this topic](/en/topics/cloud-computing "More about this topic")