SaaS, software as a service, is a cloud computing model that provides customers access to software products over the internet and SaaS applications are sometimes called Web-based software, on-demand software, or hosted software.

SaaS Characteristics

  1. Multitenant Architecture:all users and applications share a single, common infrastructure and code base that is centrally maintained.
  2. Easy Customisation:ability for each user to easily customise applications to fit their business processes without affecting the common infrastructure.
  3. Better Access:Improved access to data from any networked device while making it easier to manage privileges, monitor data use, and ensure everyone sees the same information at the same time.

SaaS vs packaged software

In the past, businesses bought and relied on packaged software – from multi-application systems covering spreadsheets,databases and email to specialist packages for particular tasks like project management or business intelligence.

The benefits of SaaS

  1. Low setup and infrastructure costs: You just pay for what you need with no capital expenditure that needs to be depreciated on your balance sheet over
  2. Accessible from anywhere: Just connect to the internet and you can work from wherever you need to be via desktop,laptop, tablet or mobile or other networked device.
  3. Scalability: You can adapt your requirements to the number of people who need to use the system, the volume of data and the functionality required as your business grows.
  4. Automatic, frequent updates: Providers offer timely improvements thanks to their scale and because they receive feedback about what their customers need. This frees up your IT department for other more business-critical tasks.
  5. Security at the highest level required by any customer: Because of the shared nature of the service, all users benefit from the security level that’s been set up for those with the highest need.

What is B2B?

B2B (business-to-business) is a company whose target customers are other companies.

In SaaS case, it is a company that sells software products or services to an enterprise company.

Popular B2B companies

1- Slack
Slack is a real-time messaging software application that aims to connect colleagues to track task management, productivity, etc.

2- Salesforce
Salesforce is a customer relationship management software that gives insight regarding the interaction with the customers in each relevant department, such as the sales team.

What is B2C?

B2C (business-to-consumer) is a company whose target market is made up of end-users.For SaaS, it is a company that sells software products or services to consumers over the internet without any middle person.

Popular B2C companies

1- Netflix
Netflix is a SaaS company that sells software to watch licensed videos over the internet and follows a subscription-based business model by offering various subscription plans to its customers.

2- Spotify
Spotify is a SaaS subscription service that provides online and offline music and podcasts without any ads for its customers to stream.


In addition to the concluding Both business models that there are B2B and B2C differ in terms of designing products to meet the preferred target audiences.B2B SaaS deal with a much smaller market and  purchases go through a very long list of approvals.For B2C, you can cancel your subscription later, especially if it is not suitable for the product you are selling, but impulse purchases are still possible.