SaaS: The distribution method used by companies to host software

You may or may not have heard of SaaS, but it is a very important term when it comes to a company's distribution method for online software hosting, as it is a software licensing distribution model, where the provider hosts applications on the Internet or makes them available through a website Web so that users do not have to download anything to their computers to access the software.


Even if you're not familiar with SaaS, you've likely used a service that uses this model. The model has become so popular that one survey found that 86% of organizations expect most of their software needs to be met by SaaS by 2022.


SaaS types

  • Vertical: This focuses on the needs of one industry, for example, it only addresses law firms.

  • Horizontal: Works in many industries such as Quickbooks, for example, allows users to keep books regardless of their profession. While they both use the same distribution model, the difference lies in how they serve their customers, and who those customers are.

SaaS models


Here are some examples of popular SaaS examples :


Google Drive: This allows you to create documents, presentations, spreadsheets, and forms that update automatically.

Dropbox: It acts as a file hosting service so that users can easily share files and back up their work.

Salesforce: Focuses on managing customer relationships.

DocuSign: This allows you to easily exchange and sign documents.

Slack: allows workers to communicate with each other through direct messages.

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