Final answer:
A company that allows monthly licensing of software for online use is an example of a Software as a Service (SaaS) business model, favored for its scalability, reduced upfront costs, and ease of access.
Step-by-step explanation:
Software as a service is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted.
And a company that allows you to license software monthly to use online is also an example of a Software as a Service (SaaS) business model. This model has become increasingly popular with the rise of cloud computing. Instead of purchasing software outright and installing it on local machines, SaaS providers host the software on their own servers, allowing users to access it via the internet, typically through a web browser.
Businesses and individuals prefer this model due to its scalability, lower upfront costs, and ease of access. Some well-known examples of SaaS include Microsoft Office 365, Salesforce, and Adobe Creative Cloud.
These platforms offer a variety of software tools on a subscription basis, ensuring that users always have access to the latest updates and features without the need for manual upgrades.