Software as a service allows the use of software as a service - typically though licensing applications to customers or subscribers whereby they make use of the application on demand as a service. Billing options typically include time-based subscriptions or a "pay-per-use" model. Deployment typically happens remotely over a network or over the Internet.

The benefits of using software as a service are immense. Steady revenue streams, access to untapped markets and a low total cost of ownership are some of the benefits operators can offer to their subscribers. Moreover, the ongoing engagement with subscribers though software as a service feeds into application development processes and results in an enhanced understanding of requirements. New applications and services can then be developed that are closer to customer needs and up to date across the entire subscriber base.

While customers make significant savings by limiting their spends to hardware only, software developers and vendors are free to host and operate the software for use by clients, ensuring fee based income. Vendors can also maintain control over their product by choosing to retain the application on their own servers while allowing internet-based access, or transfer the application to their client's devices where it is disabled after the expiry of the subscription.