In cloud storage, 'SaaS' stands for Software as a Service, which refers to a delivery model where software applications are hosted in the cloud and accessible over the Internet. Rather than installing and maintaining software on local devices, users can access applications through a web browser, enabling flexibility and scalability. SaaS eliminates the need for upfront hardware and software investments, as it operates on a subscription basis, ensuring that organizations can adapt to changing demands without significant financial commitments. This model is commonly used for services like email, collaboration tools, and customer relationship management, streamlining access to essential software functionalities.