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Glossary · business-model

SaaS

Definition

SaaS (Software as a Service) is a business model where software is delivered over the internet on a subscription basis — no installation required. Users access it via browser or mobile app; the vendor handles infrastructure, security, and updates. Slack, Notion, Shopify are SaaS examples.

Published: 2026-05-05Updated: 2026-05-05

Detailed explanation

SaaS vs on-premise: On-premise software installs on the company's servers, maintenance is the customer's problem; SaaS vendors are responsible. On-premise demands high upfront cost and IT resources; SaaS offers monthly/annual flat fee, easy scaling, automatic updates.

SaaS business metrics: MRR (Monthly Recurring Revenue), ARR, churn rate, LTV (lifetime value), CAC (customer acquisition cost), NPS. Successful SaaS: high LTV/CAC (>3:1), low churn (<5%/year enterprise).

SaaS in Turkey: ikas (e-commerce), Inveon, Parasüt (accounting), Kolay İK, Logo Go (SMB ERP). KVKK compliance + Turkish UI are critical for B2B SaaS. Payments via iyzico + card installment.

Use cases

Cloud ERP/CRM for SMBs

Startup product: new B2B software

Vertical SaaS (sector-specific: clinic, restaurant, dealership)

B2C consumer app (subscription model)

White-label SaaS (for resellers)

Pros

  • +Low startup cost (subscription)
  • +Auto-updates + no maintenance
  • +Scalability (price grows with users)
  • +Multi-tenant (one infra, many customers)

Cons

  • Data privacy / KVKK sensitivity (data moves to 3rd party)
  • Internet dependency
  • Can be more expensive long-term vs on-premise
  • Customization limits

Related terms

MVPMulti-tenantAPISubscription

Related services

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