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These are applications hosted over the internet so the user does not have to download them. An example is Google Apps, where you can access something similar to Microsoft Word or Excel, without having to download anything.
Wikipedia
Software as a service (SaaS ) is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. SaaS is also known as on-demand software, web-based software, or web-hosted software.SaaS is considered to be part of cloud computing, along with several other as a service business models. SaaS apps are typically accessed by users of a web browser (a thin client). SaaS became a common delivery model for many business applications, including office software, messaging software, payroll processing software, DBMS software, management software, CAD software, development software, gamification, virtualization, accounting, collaboration, customer relationship management (CRM), management information systems (MIS), enterprise resource planning (ERP), invoicing, field service management, human resource management (HRM), talent acquisition, learning management systems, content management (CM), geographic information systems (GIS), and service desk management.
SaaS has been incorporated into the strategies of nearly all enterprise software companies.
Software_as_a_service - Wikipedia, the free encyclopedia