Why are website builders SaaS?

SaaS website builder vs self-hosted flexible system

Not all website builders are SaaS.

“SaaS” (Software as a Service) is a business model where software is accessed through a subscription instead of a one-time purchase. In most SaaS website builders, your website is also hosted on the provider’s servers and runs only while your subscription is active.

But SaaS is not a technical requirement for building websites – it is a business model choice. Some platforms are open-source, others are self-hosted, and some, like UltimateWB, provide flexible hosting options so you are not locked into a single environment.

The Shift from Ownership to Subscription

To understand why website builders moved this way, look at the broader history of software. Once upon a time, you bought software once and you owned it. Tools like Adobe Photoshop, Dreamweaver, Outlook Express, and Microsoft Word used to be one-time purchases. You installed them on your computer, and they were yours to use indefinitely without a monthly bill.

Today, those same tools have shifted to the SaaS model. You don’t “buy” Word or Photoshop anymore; you rent them. Website builders followed this same trend, turning what used to be a standalone tool into a recurring service.

Related: Webflow’s Client Seats Complicate Ownership – How UltimateWB Gives Control Back

Do you really own your WordPress website?

What the SaaS Model Means for Your Website

In a typical SaaS website builder, software and hosting are bundled into one service. This usually means:

  • Recurring Fees: You pay monthly or yearly to keep your site active.
  • Hosted Environment: Your website runs on the provider’s infrastructure.
  • Centralized Management: Updates, features, and security are controlled by the platform.

This structure is designed to simplify website creation, but it effectively links your website’s existence to your ongoing subscription.

Why SaaS Became the Dominant Model

SaaS became widely used in website builders due to both business and practical reasons:

  • Predictable Revenue: Subscription pricing creates ongoing income instead of one-time sales.
  • Simplified Maintenance: Updates and infrastructure are managed centrally for all users.
  • Ease of Use: Users don’t need to configure servers or manage installations.
  • Scalability: Platforms can support large numbers of users with one system.

These advantages made SaaS the standard model for many modern website builders.

Breaking the Bundle: SaaS vs. Flexible Systems

So which website builders don’t follow the SaaS approach?

Open-Source Systems Platforms like WordPress, Joomla, or Magento allow you to install software independently and choose your own hosting provider. This provides more control but also requires more technical management.

Flexible Website Builders: UltimateWB separates the software from the hosting decision. Instead of being locked into one environment, you can:

  • Host on UltimateWB servers for a managed setup, while also having full access to your cPanel hosting account.
  • Host on your own server – you just need to set it up to meet the minimum Server Requirements.
  • Use UltimateWB Cloud plans which bundles the website builder with hosting – this is like the other SaaS website builders, except that with UltimateWB you can upgrade to ownership and full access.
  • Move or scale hosting as needed with either option.

This allows more flexibility in how and where your website is deployed.

Why This Distinction Matters

The difference between SaaS and non-SaaS systems comes down to how tightly software and hosting are connected.

  • SaaS models bundle software, hosting, and updates into a single subscription system.
  • Flexible or self-hosted systems separate software from hosting, giving users more control.

SaaS prioritizes simplicity and convenience. Flexible systems prioritize control and deployment freedom.

Related: Why So Many Businesses Are Switching from Hosted Platforms to Self-Hosted Builders

In Summary

Website builders are often SaaS because the subscription model is scalable, predictable, and easy to manage for the companies that run them.

So when people ask why are website builders SaaS, the answer is simple: it’s a business model designed for recurring revenue and centralized control. However, as open-source platforms and flexible systems like UltimateWB show, hosting and software do not have to be tied to a single subscription-based environment.

Got a techy/website question? Whether it’s about UltimateWB or another website builder, web hosting, or other aspects of websites, just send in your question in the “Ask David!” form. We will email you when the answer is posted on the UltimateWB “Ask David!” section.

Meet David from the UltimateWB Team

David is a full-stack web developer with over 20 years of experience in programming, design, and server administration (WHM/cPanel), specializing in building high-performance, secure web solutions that prioritize user autonomy. Have a technical hurdle?  Ask David!

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