Box 1: Azure Platform as a service (PaaS)
Organizations typically use PaaS for these scenarios:
Development framework. PaaS provides a framework that developers can build upon to develop or customize cloud-based applications. Similar to the way you create an Excel macro, PaaS lets developers create applications using built-in software components. Cloud features such as scalability, high-availability, and multi-tenant capability are included, reducing the amount of coding that developers must do.
Box 2:
Software as a service (SaaS) allows users to connect to and use cloud-based apps over the Internet. Common examples are email, calendaring, and office tools
(such as Microsoft Office 365).
SaaS provides a complete software solution that you purchase on a pay-as-you-go basis from a cloud service provider. You rent the use of an app for your organization, and your users connect to it over the Internet, usually with a web browser. All of the underlying infrastructure, middleware, app software, and app data are located in the service provider's data center. The service provider manages the hardware and software, and with the appropriate service agreement, will ensure the availability and the security of the app and your data as well. SaaS allows your organization to get quickly up and running with an app at minimal upfront cost.
Reference:
https://azure.microsoft.com/en-us/overview/what-is-paas/