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The software is typically architected in a loosely coupled way (via web services) for agility, and the customer can choose and pay for only the functionality that is desired. The software is delivered to the client via the Internet, and some providers provide an off-line component. There is no upfront license cost; instead, an annuity stream is charged.
Managing IT infrastructure by its very nature is a technical activity best left to Professional providers and this is where "Software as a Service" a delivery model is fast gaining rapid acceptance.
Wikipedia defines SaaS (Software as a service) as a software application delivery model where a software vendor develops a web-native software application and hosts and operates (either independently or through a third-party) the application for use by its customers over the Internet...
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