Software-as-a-Service (SaaS)

Software-as-a-Service (SaaS), is defined as a subscription-based software licensing model that is nested through external servers.

Generally accessible through an Internet connection, SaaS requires users to log into the system by using credentials such as a username (or email) and passwords.

One of SaaS’s biggest advantage would be that users aren’t required to download software onto their devices but rather only require an Internet connection to gain program access.

While many trading platforms offer cloud trading services through PaaS, popular investment entities such as JPMorgan Chase released software as a service trading software known as Athena, where traders can better monitor risk while running in-depth analysis on investments.

How is SaaS Used?

More recently, Goldman Sachs licensed access to its risk management system, SecDB while other industry players such as MSCI the bank, and Bloomberg have become increasingly involved in the applications of SaaS within the fintech industry.

Outside of retail trading, SaaS is becoming increasingly invested within the financial markets. Indeed, venture capitalists have already begun investing in SaaS startups.

Companies such as Amazon Prime, Spotify, and Netflix are other forms of SaaS that would have issued exponential dividends if investors amassed the stocks during their initial public offerings.

SaaS companies are classified as B2B (business-to-business) or B2C (business-to-consumer).

The example including streaming conglomerates such as Netflix is an example of a successful B2C SaaS

While the streaming examples just shared (Netflix) are examples of a B2C SaaS, examples of B2B SaaS include Dropbox, Adyen, MailChimp, and EverNote.