What is SaaS and why are so many apps subscription-based now?

SaaS stands for Software as a Service — you use apps in your browser or on your phone instead of installing them on your computer, and pay a monthly subscription instead of buying once. Microsoft 365, Google Workspace, and Slack are SaaS. They're always up to date, work everywhere, and your files are safe because they're stored in the cloud.

SaaS is the shift from buying software once to renting it as a subscription. Instead of installing Photoshop once and keeping it forever, you pay Adobe monthly and use Photoshop in your browser. SaaS works through the internet, so your files are always backed up, you can access them from any device, and you always have the latest version without installing updates. For companies, subscriptions mean steady income and data about how customers use their products.