This term consists of two parts: B2B means business-to-business and SaaS stands for Software-as-a-Service. B2B typically entails selling goods and services from one company to another as corporate sales.
SaaS is a cloud model in which the vendor takes over all the tasks of deploying and maintaining applications. This includes cloud hosting of servers, operating system installation, virtualization and backup tools, middleware, and applications.
B2B SaaS means that the “First B” company as a vendor provides the software product to the “Second B” company for use in the cloud with a browser or mobile application for access (or on a desktop, but with a replication of files to the cloud). The use of software according to the SaaS model usually takes place on the B2B marketplace website of the “First B” company on a subscription basis with a recurring payment, usually monthly or yearly.
SaaS is not the only cloud-hosting model for B2B applications. There are also PaaS (Platform-as-a-Service) and IaaS (Infrastructure-as-a-Service) models, which offer fewer services for clients, but more flexibility in customizing applications.
In the PaaS model, a data center provides IT hardware with preinstalled operating systems of your choice, with tools for creating, testing, and launching applications. For IaaS, the number of services is even more limited, as the data center provides only servers, disk storage, and network connectivity to the internet backbone. In an IaaS model, software installation and updates are purely a client’s responsibility.