Before SaaS applications delivered via the internet became popular, it was common to buy software in boxes from physical stores. Boxed software was necessary when downloading software wasn’t as practical or fast.

SaaS is a delivery model as well as a business model. Many consumers are familiar with video-streaming services such as Netflix, Hulu, or Disney+. When Netflix first started in 1997, they were only shipping physical DVDs to people’s homes. However, they had already established a monthly subscription business model where people could consume as many movies as they wanted for a fixed monthly fee. As internet speeds increased, Netflix transitioned to streaming videos starting in 2007 while keeping the same monthly subscription business model.

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