Software as a service (SaaS), sometimes referred to as "on-demand software," is a software delivery model in which software and its associated data are hosted centrally on a service offering compnies premise(called as on "cloud") and are typically accessed by users using a thin client, normally using a web browser over the Internet.
Force.com is a platform provided by salesforce which is totaly on cloud. It is generally known as PaaS (Platform as a Service). Customer need not to maintain any Application or database server simply buy licenses to use services on per user basis.
Salesforce application operate on Multitenant Environment. A multitenant application cost-efficiently shares
a single stack of resources to satisfy the needs of multiple tenant (organization).
Single-tenant systems give a user its own database and its own instance of the software application. Placed on either individual server, or segregated via extensive security controls to create its own virtual server, users of single-tenant systems enjoy the benefits of significant configurability of software, robust functionality, and enhanced security.
i think below screen shot make more sense.
Single Tenant Architecture |
Multitenant Architecture |
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