What is software as a service?

Definition

The provider runs and maintains the application while customers access its functions over a network. Pricing can depend on seats, usage, features or another measure, and the provider typically manages deployment and updates.

AI can change the features and costs of a service without removing its operational responsibilities. Customers still need useful functionality, reliable access, appropriate data handling and a clear understanding of what the service includes.

ELI5

Software as a service means using an application that someone else runs for you. For example, a company might pay monthly for an online customer-management tool instead of installing and maintaining its own version.

The subscription is a way to deliver and pay for the tool. Adding AI can change what it does or how it is priced, but the service still needs to work reliably.

Does it always charge per user?

No. Providers may charge by users, usage, features or other measures, depending on the service.

Does AI make the service model disappear?

Not necessarily. AI can change development costs and product capabilities while the application still operates as a provider-run service.

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Definition card for software as a service: What is software as a service?

Software as a service delivers access to an application operated by a provider, usually through an online service and recurring payment.