It's based on use of a server, and you can customize what this server is. Using someone else's dictionary database probably isn't SaaSS; looking up words in their database isn't something you would be able to do in your computer. On the other hand, it's true that you don't necessarily need to access someone else's dictionary remotely; you could have a local copy and access that.

I think remote dictionaries have a legitimate use: making sure the definition you're reading is up-to-date. I'm not entirely sure how I feel about using remote dictionaries for all look-ups, though.

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