Bill Gates calls it "the next sea of change", analysts call it a "tectonic shift" in the industry. Software-as-a-service (SAAS) is the delivery of software as an Internet-based service via a web browser or terminal services, rather than as a product that must be purchased, installed and maintained.
The appeal is obvious: SAAS is quicker, easier and cheaper to deploy and operate than traditional software, which means technology budgets can be focused on providing competitive advantage, rather than maintenance.
Most observers expect the market to be worth USD 12 billion by 2010.
Source: The Economist, April 22nd 2006