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URL:  https://boards.fool.com/darth-i39m-not-sure-that-we-are-speaking-the-34114318.aspx

Subject:  Re: Mid-month update. What I've done and why Date:  1/20/2019  11:02 AM
Author:  tamhas Number:  50692 of 57096

Darth, I'm not sure that we are speaking the same vocabulary. There are a couple of important distinctions here. One obvious one is where the software is hosted. *Often* SaaS is externally hosted and *often* purchased software is on prem, but that is not diagnostic, merely what is typical. The word "subscription" is a little fuzzy. It tends to imply that one pays for the right to use the software and that right only exists as long as the subscription is maintained. That is certainly true of SaaS. But, there can be an element of on-going revenue with purchased software too in the form of a "maintenance" fee which entitles one to support and upgrades. But, the important thing about all of the *aaS licensing models is that they are dynamic. If you are a growing business, you keep adding capacity. If you are a seasonal business you add it in season and then back off out of season. If you have a special sale, you can ramp up for that.

While the most common way to deliver *aaS products is hosted, the licensing model can and has been used for on prem products. This has been true since the 90s.
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