Software as a service (SaaS) is an application delivery model where a software vendor develops a web-native software application and hosts and operates the application for use by its customers over the Internet. One of the biggest distinctions about this business model is that customers do not pay for owning the software itself but rather for using it.

Although the SaaS model can benefit any business system, it is particularly well-suited for eCommerce solutions because by their nature, they have to be delivered across the Web. A customer relationship management system, on the other hand, typically runs behind the firewall and doesn’t need to be delivered to unknown users in all corners of world.