Organisations can rent different business applications. Some examples of business applications are enterprise resource planning (ERP), customer relationship management (CRM), and document management.
For businesses, that means they can invest in sophisticated enterprise applications without having to set them up and maintain them. The service provider then purchases, install, update and maintain hardware, middleware, and software. This makes it more affordable for all businesses, and they also only need to pay for the services they actually use.
It also gives huge advantages to remote work because users can access information and data from anywhere, anytime.