SAAS is an acronym for Software as a Service. Service as a Service is a business model for software makers that is currently in vogue. The main distinction is that their software is no longer a product to be purchased a single time, but rather a service to be subscribed and renewed.
Photoshop is likely the most famous example (unless you already know BaseCamp.) Photoshop used to be something you could buy. You had a disk that said "Photoshop" on it. Now, Adobe no longer sells Photoshop. Instead, Adobde sells subscriptions to thier "Creative Cloud" suite, which includes a digital download of the latest version of Photoshop.
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