On-Demand Software is a software delivery model in which application software is delivered to users via a web browser. Users do not buy the license for the software, but only a right to use it on a subscription basis. A user may subscribe to all the features/functionalities of the software or just a portion of them. Also On Demand Software can be defined as the Software-as-a-Service (SaaS), as Hosted software and/or Hosted application.

The software resides on a central server and not on the customer’s computer. The user accesses the application via a web browser and the On-Demand provider is responsible for software maintenance and performance. The primary value delivered by On-Demand is the continuous and ongoing support for the application by the service provider. Network-based access allows maintenance, support and upgrades to the software from the provider’s data center.