The acronym "SaaS" stands for Software as a Service in cloud computing. It represents a software distribution model where applications are hosted in the cloud and accessed via the internet, eliminating the need for local installation. Users typically pay for SaaS on a subscription basis, which allows for flexibility and scalability. This model offers advantages such as automatic updates, accessible anywhere with internet access, and reduced IT overhead for organizations. SaaS is widely used in applications like customer relationship management (CRM), collaboration tools, and more.