Software-as-a-Service, or SaaS, is a software delivery method that provides access to software and its functions remotely as a Web-based service. SaaS allows organizations to access business functionality at a cost typically less than paying for licensed applications since SaaS pricing is based on a monthly fee. Also, because the software is hosted remotely, users don't need to invest in additional hardware. SaaS removes the need for organizations to handle the installation, set-up and often daily upkeep and maintenance. Cloud application services, whereby applications are delivered over the Internet by the provider, so that the applications don’t have to be purchased, installed, and run on the customer’s computers. SaaS providers were previously referred to as ASP (application service providers). In the SaaS layer, the service provider hosts the software so you don’t need to install it, manage it, or buy hardware for it. All you have to do is connect and use it. SaaS Examples include customer relationship management as a service.