Simply put, software-as-a-service is the delivery of software via the Internet. The advent of “hosted” application services means companies no longer have to buy, build, manage and maintain infrastructure and applications. “This translates to less maintenance and lower operational costs,” said Bill Thompson, VP of NSI.

According to two recent surveys, many companies believe software-as-a-service will be an important part of their future. More than 78% of 500 respondents (major industries & various company sizes) to a survey by AMR Research report they are using or considering software-as-a-service. Another survey, this time of 118 IT professionals by Cutter Consortium, showed 65% of respondents are using or considering software-as-a-service.

The most popular applications being considered are CRM, sales force automation, ERP, human resources management and supply chain management.

"These companies recognize all the promised cost and time saving benefits,” Thompson said. “Not to mention the change from a capital expenditure to a manageable monthly expense."