What Does SaaS Mean?

SaaS stands for Software as a Service. It refers to a method of delivering software applications over the internet, rather than requiring users to install and run the software on their own individual computers or on-premise servers. Instead of purchasing a software licence and hosting the application yourself, you access SaaS applications through a web browser, typically on a subscription basis, while the software provider hosts, maintains, and secures the underlying infrastructure.

SaaS is one of the three main categories of cloud computing, alongside Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). Of the three, SaaS is the model most familiar to everyday business users, since it covers the ready-to-use applications that staff log into directly — think email platforms, accounting software, customer relationship management (CRM) tools, and board management software.

For Australian organisations, SaaS has become the default way that most new business software is bought and used. Rather than budgeting for expensive hardware, IT staff to manage servers, and periodic software upgrades, organisations pay an ongoing subscription fee and leave the technical maintenance to the vendor.

How Does SaaS Work?

In a SaaS arrangement, the software provider hosts the application on their own servers or through a cloud infrastructure partner (such as Microsoft Azure or Amazon Web Services). Users connect to the software over the internet, usually through a standard web browser or a dedicated app, without needing to install anything locally beyond that.

Key characteristics of SaaS include:

• Subscription-based pricing — Organisations typically pay a recurring fee, often billed monthly or annually, rather than a one-off perpetual licence.
• Centralised hosting and updates — The vendor manages servers, security patches, and version updates, so all users are automatically kept on the latest version of the software.
• Multi-tenancy — Many SaaS platforms run on shared infrastructure where multiple customer organisations use the same underlying application, with each customer's data kept logically separate and secure.
• Accessibility — Because SaaS applications are internet-based, users can typically log in from any location and on a range of devices, provided they have an internet connection and the correct credentials.
• Scalability — Businesses can generally add or remove user licences as their needs change, without needing to buy new hardware or reconfigure servers.

SaaS vs On-Premise Software

Understanding SaaS is easier when compared with the traditional alternative: on-premise software. On-premise software is installed directly onto an organisation's own servers or computers, and the organisation is responsible for hosting, maintaining, securing, and updating it themselves.

Some organisations, particularly larger enterprises or those with specific regulatory or data residency requirements, may still prefer or require on-premise or private-cloud hosted solutions. BoardCloud's Enterprise Edition, for example, supports self-hosting on private servers for organisations with these particular needs, while its standard offering follows the conventional SaaS delivery model.

Why SaaS Matters for Boards and Governance Teams

Board management software is a practical, everyday example of SaaS in action. Rather than installing governance software on office computers or maintaining an in-house server for board documents, most boards and company secretaries now use a SaaS-based board portal that directors and executives can log into securely from wherever they are.

This is particularly relevant to the work of a board, since directors and committee members often need to review board packs, agendas, and minutes from different locations — at home, while travelling, or between meetings — and a SaaS-based board portal makes this straightforward, provided appropriate security safeguards are in place. BoardCloud's features page outlines how a SaaS board portal supports agenda building, minute production, and document distribution within a single, centrally maintained platform.

Security is a common and reasonable question when organisations move governance processes to a SaaS platform. Reputable SaaS providers implement measures such as encryption of stored documents, role-based access permissions, and audit logging to track user activity. BoardCloud outlines its approach to these safeguards on its board portal security page, including its use of AES-256 bit encryption for documents stored on its servers.

Common Benefits of the SaaS Model

Organisations adopt SaaS solutions, including board portals, for a number of practical reasons:

• Lower upfront costs — There is typically no need to purchase servers or extensive IT infrastructure, since the vendor hosts the software.
• Predictable, subscription-based budgeting — Costs are usually structured as a recurring fee per user or per organisation, which can make budgeting more predictable than large upfront licence purchases.
• Automatic updates — Because the vendor manages the software centrally, new features, security patches, and bug fixes are typically rolled out to all users without requiring manual installation.
• Reduced IT burden — Internal IT teams generally don't need to manage servers, backups, or software installations for SaaS applications, freeing up their time for other priorities.
• Remote and flexible access — Users can generally access SaaS applications from any device with an internet connection, which supports remote work and distributed teams, including boards whose directors may be based in different cities or states.

Pricing structures vary between SaaS vendors. Some charge per user per month, while others — such as BoardCloud — offer models with unlimited users included in a flat subscription fee. You can review BoardCloud's specific approach on its board portal pricing page and its breakdown of pricing models.

Considerations When Choosing a SaaS Provider

Because SaaS involves handing a degree of control over hosting and data management to a third-party vendor, organisations should consider a few factors before selecting a provider:

• Data security and encryption practices — How the vendor protects data both at rest and in transit.
• Uptime and reliability — What service levels the vendor commits to, and their track record of availability.
• Data hosting location — Where servers are physically located, which can be relevant for Australian organisations with data residency preferences or obligations.
• Support and training — What level of ongoing customer support is included, and whether training is available for new users.
• Exit and data portability — How easily an organisation could export its data and transition away from the platform, should the need arise.

Organisations evaluating board management software specifically may find it useful to compare providers directly. BoardCloud publishes a comparison of its own pricing against other vendors on its competitive costs page.

Related Terms

If you're building your understanding of cloud-based software, it may also help to explore related concepts such as board portals, governance software, and document security — all of which intersect with the SaaS model. BoardCloud's help section includes further explanations of how these concepts apply specifically within its own platform.

Frequently Asked Questions

Is board management software considered SaaS?

Yes, most modern board management software — often called a "board portal" — is delivered as SaaS. This means the provider hosts the software on their servers, and directors and administrators access it through a web browser or app, typically via a subscription. Some vendors, including BoardCloud, also offer a self-hosted Enterprise option for organisations with specific infrastructure requirements.

What is the difference between SaaS and cloud computing?

Cloud computing is the broader category, referring to computing resources (servers, storage, software) delivered over the internet. SaaS is one specific type of cloud computing — it refers to complete, ready-to-use software applications. The other main types of cloud computing are Infrastructure as a Service (IaaS), which provides raw computing infrastructure, and Platform as a Service (PaaS), which provides a platform for developers to build their own applications.

Is SaaS software secure enough for confidential board documents?

Reputable SaaS providers generally implement strong security measures, such as encryption, role-based access controls, and audit logging, specifically to protect confidential information like board packs and minutes. However, the level of security varies between vendors, so it's worth reviewing a provider's specific security practices, such as encryption standards and access permission structures, before entrusting them with sensitive governance material.

Do I need any special hardware or IT support to use a SaaS board portal?

Generally, no. One of the core advantages of SaaS is that it doesn't require organisations to purchase or maintain their own servers. Users typically only need a device with an internet connection and a web browser to access the software, and the vendor is responsible for hosting, maintenance, and updates.