What is the meaning of Software as A Service. (SaaS)

[Kross]

I use to hear the term, Software as A Service abbreviated as SaaS. I am lost as to what it really connotes? Does it have to do with commercialization of software?

Any techie here, please explain what SaaS is and the significance of it to a tech pro and consumer alike.

 

[King Belieal]

SaaS implies that a software is hosted on a cloud server and access is by subscription through the Internet.