The term Software as a Service - SaaS is used to describe a new model of software distribution and use, according to which the software is available to customers for use as a subscription service over the Internet.

• The customer does not purchase licenses (user licenses), but acquires the right to use the software as a subscription service for a definite period of time
• The software is not installed in the subscriber's equipment but is installed in a Data Center, it belongs to the service provider and is used simultaneously by all service subscribers
• The subscriber can access and use the software over the Internet, from anywhere, any time

The subscription cost includes:

• Use of the application
• Use of the hardware infrastructure used for the operation of the application
• New application versions and
• Maintenance of both hardware and software (for example, backup copies, data base optimization, new version updates, firewall updates, etc).