SAAS is now mainstream
I was first introduced to SAAS (then ASP) when I joined Brassring (now Kenexa) in 2000. We were convinced that it was how Enterprise Software will be delivered in the future. Salesforce.com was leading the way. However, most ASPs grew much slower than anybody anticipated. Profitability was elusive and hard to attain.
I believe and Infoworld just validated that SAAS finally arrived in 2009. There is robust growth and one can find multiple feature rich products in most every functional area. My team integrated many new SAAS products with our PeopleSoft ERP last year. A small business starting does not need a single piece of on-premise application software.