SaaS: 5 stocks to watch

Financial journalist and commentator on 3AW and Sky Business
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One of the big growth areas in technology in recent years has been the emergence – and expansion – of software-as-a-service (SaaS), which is the supply of software, usually on a subscription basis, over the internet. There’s no need to install and update expensive enterprise software – it’s all done for you by the supplier.

The software is hosted in the cloud, which means a network of remote servers hosted on the Internet – rather than a local server or a personal computer. Cloud computing allows companies to cut their hardware and software spending, and just use from cloud-based providers.

The subscription-based SaaS model means that businesses only pay for what they use, and are not tied to onerous and costly infrastructure upgrades: SaaS subscriptions are operating expenditure, rather than significant upfront capital expenditure. The model is flexible, scalable and allows businesses of any size to use top-level enterprise-grade tools.

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