SaaS stands for Software as a Service, a cloud-based software delivery model where applications are hosted on the provider's servers and accessed via the internet. Users typically pay for this service through a subscription model, eliminating the need for local installation and maintenance. SaaS allows for easier scalability, automatic updates, and anywhere access, making it a popular choice for businesses and individuals. Examples of SaaS include applications like Google Workspace, Salesforce, and Microsoft 365.