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What is SaaS?

SaaS (software as a service) is software you access online and pay for by subscription, instead of buying and installing it. You use it in a browser, the provider runs and updates it, and you pay monthly or yearly. Slack, Shopify, and Notion are SaaS. Most business software now works this way.

For customers, SaaS means no installation, automatic updates, and access from anywhere, in exchange for an ongoing fee rather than a one-time purchase. For the business selling it, it means recurring revenue and one central product to maintain rather than many installed copies.

Building a SaaS product means building a web app plus the business layer around it: sign-ups, subscriptions, billing, and different plans. That business layer is often as much work as the core features, which is why SaaS builds are substantial projects.

Updated July 2026

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