What does SaaS stand for? SaaS stands for “Software as a Service.” So, what does this actually mean for the consumer? Software as a service, (SaaS) is when you can subscribe to a software, and it is hosted and maintained somewhere else. So, basically, all the user would have to do is subscribe and download the app. Maintenance and other updates would be taken care of by the third party provider. Updates can also be optional by the user.