Cloud Computing Architecture Question:

The software-as-a-service (SaaS) service-model involves the cloud provider installing and maintaining software in the cloud and users running the software from their cloud clients over the Internet (or Intranet). The users' client machines require no installation of any application-specific software - cloud applications run on the server (in the cloud). SaaS is scalable, and system administration may load the applications on several servers. In the past, each customer would purchase and load their own copy of the application to each of their own servers, but with the SaaS the customer can access the application without installing the software locally. SaaS typically involves a monthly or annual fee.