SaaS business model for software enterprise

Revenue of traditional software enterprises are from software copyright licensing and software upgrades, maintenance and other services fees. As a rapidly growing operation model of software contrast to traditional perpetual-use license, SaaS (Software as a Service) softwares are subscripted by users from vendors. From views of business and technique, software product/service selection, software service classification, service pattern and charges, advantages and disadvantages of SaaS business model were analyzed in the paper. A conclusion is that SaaS business model could not only provide vendors more development opportunities but also contribute to SME's informationization.