In SaaS, distribution refers to the channels through which a product is sold to a customer, encompassing the entities and processes that are used to deliver cloud-based software to end users.

Distribution can be performed through direct selling and selling through intermediaries, which are referred to as distributors. Direct distribution is when the vendor sells the software directly to customers. Indirect distribution involves third-party distributors or resellers to end users. Both direct and indirect distribution can be utilized by vendors as part of an overall distribution strategy.