SaaS
Software as a Service (SaaS)
SaaS refers to software used exclusively as a cloud subscription, with no local installation or purchase option.
SaaS: Not to be confused with
SaaS is NOT identical to cloud ERP in general. Cloud ERP can also include hosted but individually operated installations, SaaS more narrowly means the subscription model with one shared, standardised platform for all customers.
The NIST reference model for cloud computing defines Software as a Service as one of three service models, where the customer only uses the finished application without influence over the underlying infrastructure (Source 1). All customers share the same software version, updates apply to everyone at once, and there is usually no individual version choice as with classic cloud hosting.
For ERP selection, it matters whether a vendor offers pure SaaS or also individually hosted variants, see the “deployment” field in the systems overview.
Related terms
Sources for SaaS
- National Institute of Standards and Technology (NIST), "The NIST Definition of Cloud Computing", SP 800-145 ↗