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Software as a Service (SaaS) is a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over a network, typically internet. SaaS is becoming an increasingly popular delivery model as underlying technologies that support Web services and service-oriented architecture (SOA) mature and new developmental approaches, such as Ajax, become popular. Meanwhile, broadband service has become increasingly available to support user access from more areas around the world. SaaS is closely related to the ASP (Application Service Provider) and On-Demand computing software delivery models. IDC identifies two slightly different delivery models for SaaS. The Hosted Application Management (hosted AM) model is similar to ASP: a provider hosts commercially available software for customers and delivers it over the Web. In the software on demand model, the provider gives customers network-based access to a single copy of an application created specifically for SaaS distribution.

hardware1Hardware as a Service (HaaS), in a managed services context, is a procurement process similar to licensing. Generally speaking, a Managed Service Provider (MSP) remotely monitors and administers hardware on a client's site on subscription basis. Since not all hardware lends itself to this model, some MSPs provide on-site hardware for clients and build its cost into their fees. However, this arrangement puts financial strain on the MSPs. The HaaS model, in which the vendor allows customers to license the hardware directly, was developed to alleviate this financial burden on the service provider.