Latency, in general, is the time it takes for a packet to get from point A to point B. In networking terms, latency is often measured as round-trip time (RTT), which is the time it takes for a single packet to go from one end of the connection to another and back again.
Latency can be due to physical limitations (such as distance), or it can be due to other issues such as congestion (too many packets trying to get through at once).
Latency in SaaS means that users are having trouble accessing an applications and data quickly enough. This can cause problems with performance and responsiveness, which can affect their overall experience using the software.