What SaaS actually is
SaaS is the delivery model in which software is hosted by the vendor, accessed over the internet and paid for on a subscription basis. The model collapses installation, infrastructure and upgrade burden onto the vendor, and gives buyers predictable cost in exchange.
SaaS, single-tenant and multi-tenant
Multi-tenant SaaS shares infrastructure across customers — the most cost-efficient model. Single-tenant SaaS gives each customer dedicated infrastructure — often required by regulated or large enterprise buyers. Productized platforms increasingly support both deployment topologies on one codebase.
Why productized SaaS is the dominant model
Faster deployment, predictable cost, automatic updates, lower in-house operating burden and access to vendor-side improvements. The trade-offs — vendor lock-in, data location, customization limits — are increasingly addressed by white-label, on-prem and hybrid options.
Benefits
- Fast deployment without infrastructure burden
- Predictable subscription pricing
- Continuous vendor-side improvement
- Multi-tenant cost efficiency
- Single-tenant and white-label options where required
When it matters
Anywhere the alternative is bespoke installed software or building from scratch, SaaS should be the default starting position — with single-tenant or on-prem deployment selected where compliance or sovereignty demands it.