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Here is a very informative article on the issues surrounding SAAS deployment. The one thing they didn’t mention is that a traditional purchase hits the capital budget, a SAAS deployment hits operating capital. Here is the snippet:

Not surprisingly, SaaS vendors have decided there’s no time like the present to make a full court sales press. In a down economy with slashed IT budgets, when there’s no tolerance for 18-month software implementations and the price tags of on-premise software from Oracle and maintenance fees for SAP applications are not falling, software-as-a-service and cloud computing offerings become more attractive options for businesses. Read More here…

DUBLIN, Ireland, Oct 31, 2008 (BUSINESS WIRE) — Research and Markets ( http://www.researchandmarkets.com/research/7ec7b3/erm_software_app) has announced the addition of the “ERM Software & Application Management Services Market 2007-2010 - Bundled Report” report to their offering.
Enterprise Resource Management (ERM) applications integrate content value chain and business support processes providing insight into critical business data. Stiff competition and rising costs are forcing companies to realign their processes, resources, financials etc, obtain a single view of spending levels and maximize usage of people and assets ensuring positive return on investment.
The SMB segment is expected to account for significant share of the ERM market, over the period 2008-2010. With the advent of on-demand or the SaaS (Software as a Service) model of ERP and other ERM applications, it has become affordable for a large number of companies. Further, the vendors have acquired the expertise and initiated channel programs to tap this segment.
Read more…