Learn more about Software as a service (Saas)

If you don’t know what Saas is, here is a definition: Software as a Service (SaaS) is a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over a network, typically the Internet. SaaS is becoming an increasingly prevalent delivery model as underlying technologies that support “Web services” and service-oriented architecture (SOA) mature and develop.


KISSmetrics published a report on Saas Marketiing where they presented their Saas Funnel for gaining and keeping customers. Explaining that they don’t just pop into and out of our business and that every business should understand each step in how to get traffic and how to keep it coming.

The 4 steps in this Funnel are:

1. Visit your site

2. Sign up for a free trial or demo

3. Starts using your product (also called activation)

4. Upgrades to a paid plan


Blog.Saas4Graphic provided by KISSmetrics Saas Report


Saas is closely related to Application Service Provider or ASP, but differs according to the tech info site, CIO, in the sense that instead of trying to be all things to all people, Saas offers one-size-fits-all solutions. That is, all customers of a SaaS vendor use the same software. The underlying code is the same for all customers and cannot be customized. Any features or functionality that the SaaS vendor adds to the software based on a customer’s feedback becomes available to all customers.

Some benefits of Saas include:

  • Easier administration
  • Automatic updates and patch management
  • Compatibility: All users will have the same version of software.
  • Easier collaboration, for the same reason
  • Global accessibility

According to the KISSmetrics report I referred to above, the most important thing is to stay consistent, measure your growth, know your niche and stay focused on your main goals. Every business can benefit from Saas and it’s best to stay up to date than get dated so learn as much as you can and get started!

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