The technology sector is infamous for its use of buzz words and jumping onto the latest bandwagons. Two of the latest ones are Software as a Service - SaaS for short and Cloud computing, conjuring up an image of computing in the sky!
So let's start by describing what these words mean in plain English.
Cloud computing is used to describe software and data storage accessed via the internet and usually provided by another supplier. The best analogy is to think of cloud computing as the IT industry’s equivalent of a power station run by a utility company providing electricity to your home or office. To most of us, it would be madness to consider running our own personal power station when there is a national power grid. Cloud really moves computing into the same business model adopted by utility-based services such as power, water and gas.