SaaS -- an acronym for software as a service -- is a fancy term for software you can use without having to install it on your computer. The software is installed and runs on a server and you access its functionality remotely, often through a browser. Usually this means you pay for the software on a usage basis, rather than the traditional model of upfront purchase fees.
Software as a service is increasing in popularity. There are many factors for this: increased Internet connection speeds, the popularity of netbooks, and a shared desire by many companies to overthrow Microsoft. Many small businesses use SaaS solutions internally and offer them to their customers as well.
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