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This paper sets out to help the business and IT management assess the value propositions end user businesses need to consider in moving towards exploiting Software as a Service (SaaS).

SaaS uses specialist third party companies with valuable domain expertise to deliver business services to users over the Internet. These services create new value opportunities for customer businesses, including significant reductions in capital investment budgets, maintenance and managements costs, energy costs and the provision of facilities, as well as far greater operational flexibility—and its corollary, faster business agility. One of the most important value opportunities is that it allows the customer businesses to concentrate on their core business and skills set rather than managing the technology involved.

New value can be added to business through the ability to address new and additional market opportunities by adding new business services rapidly and by scaling services to meet changing business needs, all in a very cost-effective manner. This scalability can work both ways, allowing businesses to scale up rapidly and scale down, if that is required, without the risk of being left with redundant systems.

Though relevant to all business sectors the SaaS model is particularly attractive for the small to medium-sized business (SMB) sector, giving them access to resources that they would otherwise be unable to afford.

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