"Software as a service is starting to gain favor for several reasons: It's relatively easy and inexpensive to implement; it's flexible; it doesn't require as much infrastructure; and its costs are more predictable. Gartner predicts that 25% of new business software will be delivered as services by 2011, up from 5% last year."
"Gartner estimates that software services accounted for 8% of CRM revenue last year and will jump to 12% this year."
"Customers have come to regard software as a service as reliable, or at least reliable enough, despite several service outages at Salesforce that spooked some companies. "None of us has 100% uptime and availability, across the board, 24-by-7," says Jeff Guillot, executive VP of product and technology at Hoover's, a business information company..."
Ref: Software-As-A-Service Faces Its Next Big Test By Rick Whiting, InformationWeek 11.6.06