Software-as-a-service (SaaS) offerings are finished applications that companies rent. SaaS applications are delivered via the Internet and priced based on consumption (number of users or “seats”).  While you cannot modify SaaS applications, it is possible to make small customizations.  Some examples of software-as-a-service are online social media monitoring tools such as ScoutLabs.com and CRM tool Salesforce.com.

The cost to use an SaaS application ranges from $0 to $500 per user per month depending on the application, use, and addition of supplementary modules.

When we talk about the maturity of the various cloud computing offerings, SaaS, which has been around as a technology solution for more than 10 years, is at a higher level of maturing than most other cloud services that have fewer than three years on the market.

According to Forrester, SaaS has become an established software delivery model for certain segments of the market. Forrester survey data shows that 20% of enterprises and small-to-medium size businesses have implemented or are piloting at least one SaaS solution. All major enterprise ISVs have SaaS offerings, and all major SIs are building large SaaS practices.

That said, software-as-a-service still has room for growth.  Not all applications are suited to SaaS delivery, and not even all implementations of SaaS-suited software are appropriate for a SaaS delivery.  SaaS does, however, have the potential to significantly increase corporate efficiencies and productivity.