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What is IaaS, PaaS and SaaS – explained in a nutshell

October 9, 2018

Unlike traditional software, which is conventionally sold as a perpetual license with an up-front cost (and an optional ongoing support fee), SaaS providers generally price applications using a subscription fee, most commonly a monthly fee or an annual fee. Consequently, the initial setup cost for SaaS is typically lower than the equivalent enterprise software. SaaS vendors typically price their applications based on some usage parameters, such as the number of users using the application. However, because in a SaaS environment customers’ data resides with the SaaS vendor, opportunities also exist to charge per transaction, event, or another unit of value, such as the number of processors required.

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