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SaaS application is also called web based software, hosted software, web apps or on-demand software. Regardless of the name used, the SaaS application is hosted on the server of the SaaS provider. The provider will manage aspects related the applications such as performance, availability and security.

SaaS benefits
The customers of SaaS, do not need to have the hardware or to buy the software. They do not also have to buy, to install, to maintain or to update. It is easy to get access to such software since you will only need to have the internet connection to start service.

Characteristic of SaaS
The best way that you can understand the SaaS model is to think of it as a bank that protects the privacy of every customer while providing a secure and reliable service but at a large scale. The customers of the bank can use the same technology and the same financial system without having to worry that someone may be accessing the personal information when they do not have the authorization. The bank has the same characteristics as that of SaaS model, you are using the banking software but you do not need to host the bank server or take care of the technical aspects fo software ownership

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