It is now a widely accepted fact that Software-as-a-Service (SaaS) based products are making small to medium businesses (SMBs) increasingly competitive and technology based. The success of SaaS products has now forcing most software and service providers to shift to SaaS mode. Studies show that SaaS industry is growing by more than 20% every year and is likely to replace 20% on premise business applications by 2010. And the recession may also push the growth rate upwards, as most companies will have to cut their costs by replacing expensive systems with SaaS systems.

The number and types of SaaS applications are growing day by day. Most successful SaaS applications include Customer Relationship Management (CRM) systems, Web Conferencing systems, Sales Force Automation (SFA) systems, E-mail and contact management systems, learning management systems, Enterprise document management systems, data backup systems, data sharing systems, etc. Most of these systems were once available to only large enterprises, and were the main contributors of their successes over the years.

What much more important to SaaS products other than their cheapness and up-to-date features is their easy-to-implement nature. By creating an easy web-based interface for customization, SaaS vendors minimized the need of vast technical knowledge by implementing companies. The only thing that can check the SaaS growth is enterprise data security, which is being solved swiftly.