What is SaaS (software as a service)?
You pay a subscription and the vendor keeps the software on its servers. Here is what that changes for a small business.
SaaS, or software as a service, is standard software hosted on a provider's servers and used over the internet, usually for a subscription. The customer installs nothing and does not manage servers, storage or updates; it only controls a limited set of settings for its own users and decides what data goes in.
In short
- NIST lists SaaS as one of three cloud service models.
- The vendor runs the infrastructure; you remain accountable for your data and accounts.
- In Quebec French, the recommended term is logiciel-service.
- Judge the price over several years, not the first month.
How does NIST define SaaS?
The reference definition comes from NIST Special Publication 800-145, The NIST Definition of Cloud Computing. Under SaaS, the consumer uses the provider's applications running on cloud infrastructure, reaching them through a thin client such as a web browser or through a program interface. The consumer does not manage or control the network, servers, operating systems or storage, apart from limited user-specific configuration settings [1].
NIST describes three service models in total: software, platform and infrastructure as a service. SaaS is the one where you use a finished application rather than building on top of a platform [1].
What does that look like in a service business?
Picture an electrical contractor in Laval. The dispatcher opens the scheduling tool in a browser at the office; the technicians open the same tool on a phone in the van. Nobody installs anything. The vendor patches security holes, ships new features and backs up the data. The contractor decides who gets an account, what information goes in and when to leave.
Most SaaS tools also talk to each other. They exchange data through an API, push real-time notices through webhooks, and let you connect one account to another through OAuth instead of sharing passwords.
Quebec's Office québécois de la langue française recommends logiciel-service as the French term and advises against the literal calque « logiciel en tant que service » [2]. Expect to see both SaaS and logiciel-service in bilingual contracts.
SaaS or installed software: who handles what?
| Task | Installed (on-premises) software | SaaS |
|---|---|---|
| Installing on each computer | Your business | None: a browser is enough |
| Servers and storage | Your business or its IT contractor | The provider |
| Updates and security patches | Your business, on its own schedule | The provider, for every customer at once |
| User accounts and settings | Your business | Your business, within the options offered |
| Usual pricing | Licence purchase | Monthly or annual subscription |
Split based on the NIST definition [1]; pricing terms vary by vendor.
What does a subscription cost over three years?
Which mistakes do small businesses make with SaaS?
- Comparing only the first month, without counting the users you will add next year.
- Never checking how to export your data if you switch vendors.
- Ignoring Quebec's Law 25: before personal information is communicated outside Quebec, a privacy impact assessment is required [3]. Ask where the data is hosted.
- Paying for three tools that store the same customer list: the CRM, the ERP and the calendar all drift apart.
- Leaving accounts open after an employee leaves.
Is Pilotiko a SaaS product?
Yes. Pilotiko is a Quebec web application used in a browser. It offers a dashboard per department, online booking, and AI agents whose sensitive actions wait for a person's approval. As with any SaaS tool, ask before signing how your data can be exported and where it is stored.
Frequently asked questions
Is SaaS the same thing as cloud computing?
No. Cloud computing is the broader model, and NIST splits it into three service models. SaaS is the one where you use a ready-made application without managing a platform or servers.
Can SaaS work without an internet connection?
Usually not, because the application runs on the provider's servers. Some tools offer a limited offline mode that syncs later. Check this if your crews work in areas with poor coverage.
Who is responsible for the data in a SaaS tool?
The provider runs the infrastructure, but your business remains responsible for the personal information it holds. In Quebec, the person with the highest authority in the business acts as the person in charge of protecting personal information unless that role is delegated in writing.
What is SaaS called in French?
The OQLF recommends logiciel-service, or logiciel à la demande. The acronym SaaS is still common in sales material. The literal « logiciel en tant que service » is discouraged.
Is SaaS cheaper than installed software?
Not always. A subscription avoids buying servers and maintaining them, but you pay it every month for as long as you use the tool. Compare the total over three to five years, including admin time.
Sources
- NIST, SP 800-145, The NIST Definition of Cloud Computing (accessed on October 15, 2026).
- Office québécois de la langue française (Vitrine linguistique), logiciel-service (GDT) (accessed on October 15, 2026).
- Commission d'accès à l'information du Québec, Principaux changements apportés par la Loi 25 (accessed on October 15, 2026).
Read next
What is an API?
What an API is: the contract that lets two pieces of software exchange data. Includes a worked example for a Quebec service SME and common mistakes.
OAuth: how do you connect two apps without sharing a password?
OAuth lets you connect two apps without handing over your password. How tokens and scopes work, a Quebec SME example and the mistakes to avoid.
Quebec Law 25: what changed for small businesses?
Quebec's Law 25 explained for small service businesses: the person in charge, consent, incidents, automated decisions, penalties and a costed starter checklist.
What is an ERP (enterprise resource planning) system?
What an ERP system is, what it integrates, a double-entry calculation for a Quebec service company, and the classic mistakes of a first ERP project.