Certified Internet Web (CIW) Professional Practice Exam

Which of the following is a characteristic of Software as a Service (SaaS)?

1. Requires a one-time purchase for software

2. Provides software via a subscription model

3. Must be installed on local servers

4. Requires a perpetual license agreement

The correct answer is: Provides software via a subscription model

The correct choice highlights a key characteristic of Software as a Service (SaaS), which is that it provides software via a subscription model. This model allows users to access software applications over the internet, typically as a hosted service, rather than needing to buy and install individual software products on their local machines. In this subscription model, customers pay for the software on a recurring basis—this could be monthly, yearly, or based on usage—allowing for flexibility and reduced upfront costs. This approach contrasts with traditional software distribution, where users would pay a one-time purchase fee, install the program on their own hardware, and manage updates and maintenance themselves. The subscription model of SaaS provides several advantages: it enables easy scaling, as users can often adjust their subscription levels based on their needs; it ensures that users always have access to the latest features and security updates without needing to purchase new versions; and it enhances collaboration since users can access applications from any internet-enabled device. This distinguishes SaaS from the option that states a one-time purchase is required, which reflects a traditional model, as well as from options suggesting that software must be installed locally or requires a perpetual license, both of which are not representative of the SaaS delivery method.