What is SaaS?
SaaS stands for Software as a Service. You use this software online instead of installing it. You will not have to purchase a disc or download files. Users have a monthly fee to log in through a web browser. Upgrades and security are handled by the provider. This frees up space on your computer and reduces upfront costs.
What is B2B?
B2B stands for Business to Business. A company sells their products or services to another company. This is in contrast to the company that sells items directly to shoppers at a store. A firm that sells steel to a car factory is B2B. These are usually contract deals and often seek long-term partners.
What is B2B SaaS?
B2B SaaS brings these two popular business models together. Generally speaking, this means software that businesses sell to other businesses. This helps teams keep track of sales, money, or projects. It lives in the cloud and the client pays for the software. It is a big industry since every office needs tools to run.
How It Works
A vendor builds the platform and keeps the servers. Clients sign up and access the tool over the internet. You normally pay to license based on the number of people that need an account. Sometimes this is called a "per seat" pricing model. If your team grows you just pay for more users.
Why Companies use it
In the old days, purchasing software involved a very high upfront cost. SaaS spreads that cost over months or even years. All teams can access their work from any place with internet access. This is important, especially for employees that work from home. It also takes away the headache of having to fix minor technical bugs yourself.