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What is a SaaS Fee?

A. Leverkuhn
A. Leverkuhn

An SaaS fee is a charge for SaaS (commonly pronounced like ‘sass’) which stands for Software as a Service. This term refers to software applications that companies sell for online use. In Software as a Service setups, the vendor company generally runs the software applications from their own servers. Buyers get the right to log on and use the software over the Web.

For many client companies, Software as a Service is a way to minimize the costs of using software. Buying an application out of a box, loading it onto servers and workstations, and providing in-house training can often get pricy, and some managers don’t like the hassle of installation. Installing too many software programs can also drag down the productivity of some business tech systems.

Woman doing a handstand with a computer
Woman doing a handstand with a computer

An SaaS fee can also cover the cost of regular upgrades and patches for a program. Instead of dispensing these to customers, a company offering SaaS service options can just update the programs on their own server, and the next time that clients log in, they can automatically take advantage of fixes. Lots of tech professionals say that SaaS can add to faster new releases and better customer service from software vendors.

Other elements in a SaaS fee include whether the Software as a Service is Configurable, where vendors can optimize a program for different clients. Multi-tenancy in SaaS can help provide improved service for multiple clients from one server. Scalability is another desirable aspect of Software as a Service, where vendors can make software more adaptive for the client’s growth needs. An SaaS fee can vary according to these value-adding factors.

SaaS can be part of an Enterprise Resource Planning (ERP) strategy for a business, in which tech managers look at how all of the company’s software services share servers and other infrastructure. Those in ERP related roles can often see how an SaaS setup adds to a business, and whether it’s worth the SaaS fee from the vendor.

Providers of software that can run well over an internet connection continue to look at how Software as a Service can help get clients what they need for any kind of business use. As online security protocols continue to develop, it's likely that SaaS will keep getting more popular as a more efficient way to bring the functions of a specific piece of software to a wider audience.

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