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Definition: Platform as a Service (PaaS)
PaaS is a cloud computing service which is used for developing, running and managing web apps without any type of overhead of building and maintaining the application infrastructure. In other words PaaS is a set of services which is meant for quick and efficient uses over the internet like coding and deploying web applications over the internet.
PaaS offerings can also include operating system, storage, network access, database management system, tools for design and deployment, hosting services etc. So a web developer can use PaaS to develop, test and host his/her website which is basically an end to end service.
A simple example of PaaS vendor would be Salesforce.com, which provides CRM platform to different enterprises. Other providers are Amazon Web Services (AWS), Google App Engine, IBM BlueMix, Microsoft Azure etc.