Software as a Service (SaaS) is a software distribution model where applications are hosted by a vendor or service provider and made available to customers over a network, typically the Internet. Common SaaS applications include CRM, billing and invoicing, help desk software, and HR solutions. SaaS provides scalability, centralized management, and automatic updates at a low cost since users do not have to maintain the applications themselves. However, SaaS also introduces issues like dependence on network connectivity and lack of portability between different SaaS providers.