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What is Software as a Service (SaaS)?

  1. Software installed on local machines only

  2. On-demand software managed externally, without local installation

  3. A platform for developing software applications

  4. Software that requires additional hardware for installation

The correct answer is: On-demand software managed externally, without local installation

Software as a Service (SaaS) refers to a delivery model where software applications are provided to users over the internet on a subscription basis, rather than being installed locally on individual machines. This means that the software is hosted and managed by an external provider, allowing users to access it through web browsers without needing to perform any installation or maintenance on their own devices. This cloud-based approach offers several advantages, such as automatic updates, scalability, and reduced IT overhead, since the provider takes care of the underlying infrastructure, security, and backups. Users simply need an internet connection and a compatible device to access the software, making it highly convenient for both individuals and businesses. The other options highlight characteristics that do not align with the essence of SaaS. For instance, software installed only on local machines focuses on traditional software deployment methods, while a platform for developing software applications describes Platform as a Service (PaaS). Lastly, requiring additional hardware for installation leans more toward conventional software products rather than the accessible and flexible nature of SaaS solutions.