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AZ-900 Describe cloud concepts Practice Question

What is Software as a Service (SaaS)?

⚠ Common exam trap

Many candidates confuse SaaS with PaaS (Option C) because both involve provider-managed components, but SaaS delivers a complete, ready-to-use application while PaaS only provides the platform for customers to build and deploy their own code.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

A model where the provider delivers complete software applications managed entirely by the provider

Software as a Service (SaaS) is a cloud computing model where the provider hosts and manages the entire software application, including the underlying infrastructure, middleware, and data. Customers access the application over the internet (typically via a web browser or API) without needing to install, maintain, or update anything locally. This model shifts all operational responsibility to the provider, making it the most 'hands-off' cloud service model for the customer.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • A model where customers manage their own virtual machines and applications

    Why it's wrong here

    This description matches Infrastructure as a Service (IaaS), not SaaS. With IaaS, the provider supplies virtual machines, storage, and networking, but the customer remains responsible for deploying and managing the guest OS, any runtime software, and the applications running on top. The user must handle patching, security, scaling based on demand, and high availability—none of which apply to SaaS, where the provider already manages the application stack. Thus, this option incorrectly assigns management duties that belong to the customer in IaaS to the SaaS model.

  • A model where the provider delivers complete software applications managed entirely by the provider

    Why this is correct

    In Software as a Service (SaaS), the cloud provider manages the entire application lifecycle, including the underlying infrastructure, operating system, middleware, runtime, data, and application code itself. Users access the software via a web browser or client interface, paying a subscription or consumption-based fee without ever handling installation, patching, upgrades, or capacity scaling. Microsoft 365, Dynamics 365, and Outlook are canonical examples. This model shifts virtually all operational responsibility—from physical hardware to application logic—to the provider, leaving the customer with only configuration and data entry.

  • A model where customers deploy their code on provider-managed platforms

    Why it's wrong here

    This description aligns with Platform as a Service (PaaS), not SaaS. In PaaS, the provider manages the underlying infrastructure and platform components (e.g., operating system, runtime, database, and middleware), but the customer still writes and deploys their own application code onto that platform. The user retains control over the deployed application and its configuration, whereas in SaaS the application itself is pre-built, managed, and delivered by the provider—so customers only consume the finished software without developing or deploying code.

  • A model where customers rent physical hardware from the provider

    Why it's wrong here

    Renting physical hardware from the provider is not SaaS; it resembles colocation or using dedicated hosts in IaaS. Under this model, the customer leases bare-metal servers and retains full control over the hardware, operating system, and applications, while the provider typically only supplies power, cooling, and physical security. In contrast, SaaS abstracts away even the existence of hardware, presenting a managed application to the user. Because this option focuses on raw infrastructure rather than fully managed application delivery, it does not define SaaS.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This AZ-900 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-900 exam.