Because the software is hosted by the provider, there is no need to purchase and securely house servers. There are also reduced costs to deploy the software as the software is already installed and running. This allows the purchaser to focus on the important task of configuring the software to their specific requirements. The cost savings can be significant. Because SaaS is typically provided on a “Pay as You Go” annual or monthly subscription, the need to pay for the entire license fee upfront is eliminated, dramatically reducing implementation costs and risk.