Software & tech glossary
Plain-English definitions of the terms you'll meet while choosing software.
A defined interface that lets software systems talk to each other programmatically. Most SaaS tools expose APIs so customers and integrations can read and write data automatically.
Churn rate is the percentage of customers (or revenue) lost over a period. For subscription businesses, low churn is essential — high churn erodes recurring revenue faster than new sales can replace it. Reducing churn is often cheaper than acquiring new customers.
A practice of automatically building, testing, and deploying code changes. CI merges and tests changes frequently; CD automates release. Tools include GitHub Actions and GitLab CI.
Software that centralizes customer data, interactions, and sales pipeline so teams can manage relationships and close deals. Leading CRMs include HubSpot, Salesforce, and Pipedrive.
EDR is security software that continuously monitors devices (endpoints) for threats, detects suspicious behavior, and enables rapid response. It goes beyond traditional antivirus by recording activity and supporting investigation and remediation. Examples include CrowdStrike and SentinelOne.
A time-limited period (commonly 7–30 days) of full or premium access to evaluate paid software before committing. Unlike freemium, a free trial expires and typically requires a paid plan to continue.
A pricing model offering a free tier with core features, with paid plans unlocking advanced capabilities, higher limits, or removing restrictions. Common in tools like Slack, Notion, and HubSpot. The free tier drives adoption; paid tiers monetize power users and teams.
A headless CMS manages content but, unlike a traditional CMS, has no built-in front end. Content is delivered via API to any channel — website, app, or device. This decoupling gives developers freedom over the front end. Examples include Contentful, Sanity, and Strapi.
iPaaS is cloud software for connecting apps and automating workflows between them, often without code. Tools like Zapier, Make, and Workato let you trigger actions in one app based on events in another. iPaaS is the glue of the modern SaaS stack.
MRR is the predictable subscription revenue a business earns each month; ARR is the annualized figure (MRR × 12). They are the core metrics of subscription and SaaS businesses, used to track growth, churn, and valuation.
Tools that let non-developers build apps, sites, or automations through visual interfaces instead of writing code. Examples include Webflow, Canva, and many website builders.
Software whose source code is publicly available to inspect, modify, and distribute under an open license. Examples include WordPress, VS Code, and Bitwarden. Open source enables self-hosting and avoids vendor lock-in.
Software delivered over the internet on a subscription basis, rather than installed locally. The vendor hosts and maintains the application; customers pay monthly or annually per user or by usage. Examples include Salesforce, Slack, and Notion.
Running software on infrastructure you control rather than the vendor's cloud. Offers data ownership and customization at the cost of maintenance. Tools like GitLab, Bitwarden, and WordPress support self-hosting.
An authentication method that lets users access multiple applications with one set of credentials, typically via SAML or OIDC. SSO improves security and reduces password fatigue; it's usually gated behind business/enterprise SaaS tiers.
Two-factor authentication adds a second proof of identity beyond a password — typically a code from an app, a hardware key, or a biometric. Multi-factor authentication (MFA) is the broader term. It dramatically reduces account takeover risk and is standard in business software.
A webhook is an automated message sent from one app to another when an event happens. Instead of repeatedly asking an API for updates (polling), the app pushes data to a URL you provide the moment something occurs. Webhooks power most real-time integrations between SaaS tools.
White-label software is a product one company builds and another rebrands and resells as its own. Common in agencies and platforms (e.g. a website builder offering white-label client sites), it lets resellers offer software without building it.