Software as a Service (SAAS) is growing significantly in the CRM space, but it has yet to take off in the ERP market.
Gartner predicts that at least one-third of business application software spending will be on service subscriptions rather than on product licenses by 2012. The analyst firm also predicts that by 2010, 30% of new software purchases in the Asia-Pacific will be delivered via an application utility or Software as a Service (SaaS) model.
The following article looks at ERP as a Service (SaaS applied to ERP) and weighs the two sides of the coin. (Note: the article is from India, so it has a South Asia slant to it, but it is still very informative)