SaaS
Software delivered as a subscription over the internet — licensed per seat, usage, or enterprise agreement rather than as perpetual on-premise installs.
Updated 2026-05-23 · 3 min read
Definition
SaaS (Software as a Service) is software hosted and maintained by a vendor, accessed over the internet, and typically billed on a recurring subscription — per user, per usage tier, or under an enterprise agreement.
Why it matters
SaaS removed the capital barrier to buying software, which accelerated adoption — and made spend fragment across teams. IT leaders now govern hundreds of subscriptions, not a single datacenter estate.
Related Terms
SaaS sprawl
Uncontrolled growth of SaaS subscriptions across teams — duplicate tools, unused seats, and renewals without central visibility.
Software license management
Tracking entitlements, seat utilization, and renewals across software — reclaiming unused capacity and right-sizing tiers before vendors set terms.
Shadow SaaS
SaaS tools purchased outside IT and procurement visibility — team cards, expensed subscriptions, and trials that auto-convert.