Phil Wainewright points to a good post by Paul McNamara about the fact that the term "Software as a Service" or Saas as it is commonly referred to, is simply a bad term for a new wave of technologies since it dwells on the past by referring to the term software.
Paul recommends the term Webware as a replacement.
I fully agree that a new description is needed, as most non-technical people simply don't get the whole Saas thing - there is too much of a blurred line between what was there a few years ago, and what is available now.
I like the term webware, but I have reservations about it - the first thing that sprung to my mind when I read it was similar sounding terms - Spyware, malware, etc. I get the feeling that end-users would think of the same terms and view the term webware in a negative light.
Hopefully I'm wrong though as its a nice term
USL - Providers of webware for web-designers!