SaaS (Software as a Service) refers to the process of hosting software on a third-party server and making it available to consumers as an online service. Customers in corporate environments use business applications or productivity tools from a provider rather than from the personal data center operated by their direct employer. SaaS differs noticeably from the previous business model, which required customers to make a single, on-demand application purchase that requires their hosting, implementation, and maintenance.
The SaaS delivery model is supported by a multitenant architecture that allows the distribution of several copies of a particular application from one physical server. Also, with related modifications, information, and access management, each consumer or company has its own version of the software, which is derived from a joint code base.