Software as a service provides applications hosted and maintained by the vendor, accessed through a browser or client and licensed by subscription rather than perpetual purchase.
Updates are delivered continuously rather than through version upgrades the customer schedules.
Alternative Names:
SaaS, Subscription Software
Why it Matters?
Continuous updates are the operational difference that matters for legal buyers. A vendor can change functionality, including model behavior in AI products, without the firm's approval or notice, which complicates validation and supervision obligations. Contracts should address change notification and, for AI tools, whether the underlying model version can change without disclosure.
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Related terms
Frequently asked questions
What is the practical risk of continuous updates?
How is that addressed contractually?
