Software As A Service Versus License. A traditional software license described above does not apply to software-as-a-service SaaS contracts because the customer does not download or install copies of the software. You can choose between running and managing loan servicing software from your own IT infrastructure known as the license or on-premise model or you can opt to outsource the technical elements and simply focus on using the software known as the Software as a Service or SaaS model in order to do what you do best.
Both Free and open-source software FOSS and commercial software use licenses. The main difference between a subscription license and a perpetual license for SaaS businesses is the relationship between the fee that customers pay to software companies and the access they gain to the product. Many software-as-a-service SaaS contracts grant a license to use the vendors software.
But the concepts are very different.
A traditional software license described above does not apply to software-as-a-service SaaS contracts because the customer does not download or install copies of the software. SaaS is a service as the name implies and it doesnt need a license. Software licensing companies employ. In a license the customer gets rights to copy and use software while in a services contract the customer gets a service like tech support or IT consulting.
