SaaS Definition: Provider Manages Everything for MS-900
A company wants to use a cloud service where they only manage their data and user access, while the cloud provider handles everything from the physical infrastructure to the applications. Which cloud service model is this?
Quick Answer
Software as a Service is the model being described because the customer's responsibility is reduced to the absolute minimum — data and user access — while the provider manages everything else in the stack, from the physical infrastructure up through the operating system, middleware, runtime, and the application itself. Microsoft 365 is the canonical SaaS example: users sign in and use Word, Exchange, or Teams directly, with no installation, patching, scaling, or infrastructure management responsibility falling to the customer at any layer. This is what separates SaaS from PaaS and IaaS on the exam — as you move from SaaS toward IaaS, the customer takes on progressively more responsibility for the layers beneath the application, and SaaS sits at the end of that spectrum where the customer manages nothing but their own data and who is allowed to access it. Any scenario describing 'we just want to use the software and manage our data' without mentioning infrastructure, OS, or platform responsibility is describing SaaS.
⚠ Common exam trap
Many candidates confuse PaaS with SaaS because both abstract infrastructure, but PaaS still requires the customer to manage their own applications and data, whereas SaaS offloads even application management to the provider.
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
✓
Software as a Service (SaaS)
This scenario describes Software as a Service (SaaS), where the cloud provider manages the entire stack—physical infrastructure, operating system, middleware, runtime, data, and applications—while the customer only manages their data and user access. In SaaS, the provider delivers fully functional applications over the internet, such as Microsoft 365, where users simply log in and use the software without any infrastructure or platform management responsibilities.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Infrastructure as a Service (IaaS)
Why it's wrong here
IaaS leaves the customer managing operating systems, middleware and runtimes, not just data and user access; the provider handles only virtualisation and below. It is tempting because IaaS offers maximum control over infrastructure, which suits lift-and-shift migrations of legacy servers needing custom OS configuration.
- ✗
Platform as a Service (PaaS)
Why it's wrong here
PaaS still requires the customer to manage deployed applications and their configuration; only the underlying platform is provider-managed. It is tempting because PaaS suits developers who want to push code without patching servers, but the stem specifies managing only data and user access, which is SaaS.
- ✓
Software as a Service (SaaS)
Why this is correct
SaaS delivers a complete, provider-managed application stack: the customer configures only data and user access, while the provider owns servers, storage, networking, runtime, and the application itself. That matches the stem's division of responsibility exactly.
- ✗
On-premises deployment
Why it's wrong here
On-premises places all management, from physical hardware upward, on the company, contradicting the requirement that the provider handle infrastructure through applications. It is tempting when data sovereignty or regulatory mandates forbid off-site hosting, making full local control the correct choice despite higher operational burden.
Go deeper
Related to this question
Learn chapter
Records Management in Microsoft 365
Key term
User
A user is any person, system, or device that interacts with an IT service, resource, or identity system, typically authenticated through credentials and authorized to perform specific actions.
Key term
Microsoft 365
Microsoft 365 is a subscription-based cloud service from Microsoft that combines productivity tools like Office apps with security, device management, and online storage.
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Same concept, more angles
1 more way this is tested on MS-900
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which two statements correctly describe SaaS in a cloud computing model? (Choose 2.)
easy- ✓ A.Users access a complete application provided by the cloud service provider.
- ✓ B.The provider manages the underlying infrastructure and application platform.
- C.Customers manage the operating system patching.
- D.Customers deploy their own runtime environment.
Why A: In the SaaS model, users access a complete application—such as Microsoft 365—that is hosted and managed entirely by the cloud service provider. The provider handles all aspects of the application, including availability, performance, and security, while the user simply consumes the software via a web browser or client. This aligns with the NIST definition of SaaS, where the consumer does not manage or control the underlying cloud infrastructure or even individual application capabilities.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This MS-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 MS-900 exam.