by Jason Lemkin | Other, Product, Q&A
“SaaS” has, like “Cloud”, become a term that no longer really reflects its current meaning. Time marches on and while “SaaS” used to be a term that differentiated web software from downloaded or on-prem business software, that on-prem/download world has shrunk almost to irrelevance. Thus, the term’s meaning has marched on with time.
Of course Facebook, Twitter, etc. are software-as-a-service, provided over the internet.
But the definition / line for “SaaS” is applications whose business model is primarily a subscription fee for software.
Similarly, ecommerce companies are generally not “SaaS”. They do have primarily a subscription model (unlike Facebook or Twitter) but the fee is for physical goods.
There are companies a bit in the middle that may feel consumer-y like Slack, but while the free version of Slack has incredible traction, Slack’s business model is clearly in its ARR and the fees its charges for the paid versions.
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Published on September 25, 2017
Is social media a SaaS? ›
Social media marketing is an essential part of your B2B SaaS digital marketing strategy, and here's why: “Social media usage is one of the most popular online activities. In 2021, over 4.26 billion people were using social media worldwide, a number projected to increase to almost six billion in 2027.” - Statista, 2022.What is the example of SaaS? ›
Examples of SaaS
Google Workspace (formerly GSuite) Dropbox. Salesforce. Cisco WebEx.
Of course Facebook, Twitter, etc. are software-as-a-service, provided over the internet. But the definition / line for “SaaS” is applications whose business model is primarily a subscription fee for software. Similarly, ecommerce companies are generally not “SaaS”.Is Yahoo an example of SaaS? ›
If you've used a web-based email service such as Outlook, Hotmail, or Yahoo! Mail, then you've already used a form of SaaS. With these services, you log into your account over the Internet, often from a web browser.Is Facebook a SaaS? ›
Also, it is a digital platform for communication not a publisher or media platform. Hence, Facebook is not an example of SaaS.Is Facebook a SaaS or PaaS? ›
Facebook is an example of PaaS. Developers can create specific applications for the Facebook platform using proprietary APIs and make that application available to any Facebook user.