Software as a Service
Software as a service (SaaS) is a licensing plan for software which required a paid license. Unlike traditional software licenses which are purchased one time, SaaS licensing requires a subscription, which must be paid periodically, typically once each year. In most cases, each individual SaaS subscription payment is less expensive that buying a license, but after paying for two or three years, it becomes more expensive. Software vendors often prefer this licensing scheme, since it typically enables them to charge more money overall, and they gain a constant revenue stream (rather than relying on new purchases for income, current users provide a reliable income). SaaS offerings are also typically designed to require less set-up and maintenance effort.[1] Some customers also like this option, since their software is kept up-to-date, and for businesses, it creates a slightly smaller and reliable line item in their annual budget. However, many end users consider this to be little more than a money-making gimmick, and strongly oppose it. Many large software providers use (or at least offer) SaaS models, including Adobe and Microsoft.
