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SaaS is the idea that clients can access software and applications by using a thin client or a web browser. The actual software runs on computers accessed across the Internet. Typically clients pay a fee to access the software.
Advantages include the fact the client doesn't need to handle anything such as the installation of the software or require particularly good hardware to run the software as it is all handled by the server.
Disadvantages include the fact all information is on the company's sites, this can cause issues if they go bankrupt or shut down.

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Many types of social media sites are a good example of Web 2.0

Wikis
Websites that allow anyomne to create and change pages, where information is shared between users.
SaaS
Software as a service (See right for more information).
Social Networking
Websites where people talk/communicate, often connecting people with similar interests.
Social Curation
Websites that gather information relevant to a particular topic to be shared amongst users.
Collaborations
Websites that reach a large number of people and use their collective resources to achieve a goal.
User-generated Content
Websites that allow various content (writing, images, audio, video) to be made freely available online by any individual.
Unified Communications
The collective use of types of call and multimedia messaging and communication for business or social use.

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Web 1.0 revolves around information only being written by the website author. Whereas Web 2.0 is mostly about user-generated interactive content.

With 1.0, data was posted on websites and users simply viewed or downloaded the content. Whilst 2.0 gives users more input across the Web.

The best way to compare the two generations of the World Wide Web is that Web 1.0 is a "mostly read-only web" whereas Web 2.0 can be seen as a "read-write web".

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Web 2.0 is the name given to the second generation of World Wide Web where there are more interactive ways of communicating and interacting with others than just sharing information on static webpages.

Web 2.0 is very social-orientated as websites use community-based input and interactions, as well as content-sharing and peer-to-peer collaborations.