SAAS or Software As A Service, also Oracle is working hard on the SAAS part. I even worked some time at a company providing Oracle solutions like E-Business suite as a SAAS solution. Wikipedia has the following to say about SAAS:
“Software as a service (SaaS, typically pronounced 'sass') is a model of software deployment over the internet. With SaaS, a provider licenses an application to customers for use as a service on demand, either through a time subscription or a “pay-as-you-go” model. Also known as “software on demand,” the SaaS model allows vendors to develop, host and operate software for customer use. Rather than purchase the hardware and software to run an application, customers need only a computer or a server to download the application and internet access to run the software. The software can be licensed for a single user or for a group of users”
Oracle is already running a large datacenter in Austin Texas so they can host their own SAAS solutions called the Austin datacenter for Oracle On Demand.
Oracle has to state the following about SAAS:
"The Oracle Platform for SaaS includes Oracle Database, Oracle Fusion Middleware, Oracle Enterprise Manager, and Oracle VM, a comprehensive, open and integrated set of technologies that allow ISVs to build, deploy and manage SaaS and cloud-based applications. The Oracle Platform for SaaS provides ISVs a single, integrated platform for both on-premise and cloud-based deployments, allowing ISVs to offer their customers a choice in where to run their software. Additionally, the Oracle SaaS program provides business and technology support to ISVs, hosting service providers and system integrators."
I just came across a nice recording about Oracle SAAS solutions you might want to check.