Short answer: SaaS stands for Software as a Service — software you access over the internet in a browser and pay for by subscription. The provider hosts, updates, and secures everything, so you just log in and use it. Gmail, Zoom, and TatvaCRM are all examples of SaaS.
What is SaaS?
SaaS is short for Software as a Service. It is a way of delivering software where the application lives on the provider’s servers and you access it over the internet, typically through a web browser or mobile app, for a recurring subscription fee.
The old model was to buy a software licence, install a copy on every computer, and manage upgrades and servers yourself. With SaaS, none of that is your problem. You sign up, log in, and start working — the vendor handles hosting, maintenance, security patches, and updates in the background. That shift is why SaaS now powers most business software, including modern CRM software.
How SaaS works
Behind the simple login is a straightforward model:
- The vendor hosts the app on cloud servers and keeps it running, updated, and secure.
- You access it over the internet from any device — laptop, phone, tablet — with no installation.
- You pay a subscription, usually per user per month, and can scale users up or down as you grow.
- Multiple customers share the same platform (multi-tenancy), with each tenant’s data securely isolated.
SaaS is one of three cloud-computing layers. IaaS (Infrastructure) provides raw servers, PaaS (Platform) provides tools to build apps, and SaaS provides the finished application you actually use.
Everyday SaaS examples
You almost certainly use SaaS every day, often without thinking of it as software:
| Category | SaaS examples |
|---|---|
| Email & productivity | Gmail, Google Workspace, Microsoft 365 |
| Communication | Zoom, Slack, WhatsApp Business |
| CRM & sales | TatvaCRM, Zoho CRM, Salesforce |
| Commerce & design | Shopify, Canva, Razorpay |
| Entertainment | Netflix, Spotify |
Benefits of SaaS
- Low upfront cost. No hardware to buy, no big licence fee — you pay a predictable monthly subscription.
- No maintenance. Updates, backups, and security are the vendor’s job, not yours.
- Access anywhere. Work from office, home, or a client site on any internet-connected device.
- Scales with you. Add or remove users instantly as your team grows or shrinks.
SaaS vs traditional (on-premise) software
| Factor | SaaS | On-premise |
|---|---|---|
| Upfront cost | Low (subscription) | High (licence + servers) |
| Maintenance | Vendor handles it | Your IT team handles it |
| Access | Anywhere, any device | Usually office network only |
| Data location | Vendor’s cloud | Your own servers |
For most Indian SMBs, SaaS wins on cost and simplicity. The main reason to stay on-premise is strict data-sovereignty needs — but even then, many SaaS vendors now offer India-hosted data and DPDP-aligned compliance, closing that gap.
A CRM is a classic example of SaaS done well. Learn how a cloud CRM works, how it differs from an ERP, or explore TatvaCRM’s features and start on the free plan.
Frequently asked questions
› What is SaaS in simple terms?
SaaS (Software as a Service) is software you use over the internet by paying a subscription, rather than buying a licence and installing it on your own machines. The provider hosts, maintains, secures, and updates the software; you just log in through a browser. Gmail, Zoom, and TatvaCRM are all SaaS.
› What is an example of SaaS?
Common SaaS examples include Gmail and Google Workspace, Zoom, Netflix, Canva, Shopify, and cloud CRMs like TatvaCRM, Zoho, and Salesforce. In every case you access the product online and pay a recurring fee instead of owning and hosting the software yourself.
› What is the difference between SaaS and on-premise software?
SaaS is hosted by the vendor and accessed over the internet on a subscription; the vendor handles servers, updates, and security. On-premise software is installed on your own servers, which you buy, run, patch, and secure yourself. SaaS has lower upfront cost and no maintenance burden; on-premise gives more control over data location.
› Is SaaS the same as cloud computing?
SaaS is one type of cloud computing. Cloud computing is the broad idea of delivering computing resources over the internet, split into SaaS (finished apps), PaaS (platforms to build apps), and IaaS (raw infrastructure). SaaS is the layer end users interact with, like a CRM or email service.
› How is SaaS priced?
SaaS is usually priced per user per month or per month for a bundle, often with a discount for annual billing. Many SaaS products offer a free tier or free trial. In India, SaaS is typically billed in INR with GST added, though some global vendors bill in USD.
› Is SaaS secure for business data?
Reputable SaaS providers invest heavily in security — encryption, backups, access controls, and compliance certifications — usually beyond what a small business could manage on its own servers. When choosing a SaaS vendor, check where your data is stored, their uptime record, and their compliance with regulations like India's DPDP Act.
Want to see SaaS in action? Start free with TatvaCRM — a cloud CRM built for India, no install required. Or see our INR pricing.