The term SaaS stands for 'software as a service'. SaaS designates a software delivery model, in which the application is run on the servers of the SaaS provider and users access it over the internet. That's why SaaS applications are called on-demand software, web-based software or hosted software.
The most popular SaaS solutions include CRM, accounting, project management and collaboration tools. Software as a service allows companies to cut costs as there is no need for additional hardware and there are no installation costs. SaaS clients usually pay a monthly subscription fee or a flat fee per user, which includes software maintenance and updates.
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