The most important user advantages of SaaS vary according to company size and software requirements, but they can be summarised as increased security, reduced costs and enhanced efficiency.

• SaaS installations are generally co-located in secure data centers where levels of security and management are unsurpassed – even by the largest global corporate enterprise

• Business application and infrastructure costs are not paid ‘up front’ but spread over a period of time, removing capital expenditure issues

• With business users working increasingly out of the office, SaaS makes remote access to mission-critical applications easy, as well as enhancing communications with business partners and workgroups

Key drivers for SaaS are the increased availability of wider bandwidths; faster and more powerful processors; and inexpensive storage in computers and servers in data centers.

This technology will in turn drive demand from end users, attracted by the savings in capital expenditure and software support. A major new market opportunity, it makes software affordable and accessible for many SMEs for the first time.