Software as a Service (Saas) is most typically an implementation of a specific application solution in a “hosted” format of some sort. For example, rather than distributing software on a CD, SaaS is a software delivery method that provides access to software and its functions remotely as a Web-based service. SaaS allows organizations to access business functionality at a cost typically less than licensed applications, since SaaS pricing is based on a monthly fee. Because the software is hosted remotely, users don't need to invest in additional hardware or software. SaaS removes the need to handle the installation, set-up, daily upkeep and maintenance of a local system.
