What’s the difference between SaaS and on-premise software?

The key difference between SaaS and on-premise software lies in how they are hosted and accessed. On-premise software is installed and run locally on a company’s own servers and computers, requiring the business to manage all hardware, software, security, and updates. SaaS, conversely, is hosted on the vendor’s servers and accessed via the internet, with the vendor responsible for all maintenance, updates, and infrastructure. SaaS offers subscription-based pricing, while on-premise usually involves a one-time license fee plus ongoing maintenance costs.