The term refers to on-line provision of an application to a customer. It is a new form of outsourcing, which converts the original products into services.
Thanks to SaaS, neither installation nor operation of applications require the user to employ their own equipment (hardware). SaaS provision model arose as a result of a push to reduce costs of software ownership as well as requirements for own ICT resources. Another advantage is also the possibility of rapid deployment and outsourcing, which can always provide the final user with a significant comparative advantage thanks to niche specialisation.
CCV Information Systems was the first provider in the Czech Republic to offer its EDI communication (electronic data interchange) solution as SaaS. This method was shortly after adopted by many other providers on the market, and became the most efficient method of transferring business and logistics documents.