The acronym SaaS represents Software as a Service in cloud services. This model allows users to access software applications over the Internet without requiring local installation. Through SaaS, software is hosted on the cloud and maintained by the provider, thus enabling users to use the service via a browser. This promotes easier updates, scalability, and cost-effectiveness, as users pay for what they use. SaaS applications range from email services to customer relationship management systems, playing a vital role in modern business practices.