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What is SaaS?
SaaS is software you use through a website or app and pay for by subscription, instead of installing it yourself.
- Category Building with AI
- Also called software as a service
- Updated 20 Oct 2026
SaaS, explained simply
SaaS stands for software as a service. The company runs the software on its own servers, and you log in.
You don't install updates or manage servers. The company handles that for you.
Email, online document editors, and many AI chat tools work this way.
The trade-off is that your data lives on their servers, and you often pay a monthly fee.
On ITG Now, our free tool guides compare hosted tools with free ones you can run yourself, so you can pick what fits.
Related terms
Cloud computingSelf-hostingFreemiumAPI pricing
Questions people ask about SaaS
Is SaaS free?
Some SaaS has a free plan. Many products charge a monthly or yearly fee.
SaaS vs self-hosting: what is the difference?
With SaaS, the company runs it. With self-hosting, you run it on your own machine.
Is SaaS safe?
It depends on the company. Check how it protects your data, and use a strong password.