SaaS stands for Software as a Service, which is a cloud computing model that delivers software applications over the internet. Instead of purchasing and installing software on individual devices, users can access applications through a web browser on a subscription basis. This model provides flexibility, automatic updates, and scalability, making it easier for organizations to manage software needs without the headache of maintenance and infrastructure management. SaaS is prevalent in various areas, including customer relationship management (CRM) and project management tools.