IntroductionThis document will address some of the questions commonly raised by SMART Consultant clients regarding the conversion from in-house processing to Internet-based, cloud-based processing, using software as service (SaaS). It will also provide you with the background knowledge you need to perform an analysis of your business to determine if SaaS is an appropriate model. First we will look at what software as a service is. The traditional model of purchasing software and installing it on your local computer is called software as a product. In contrast, the software-as-a-service model provides users with access to online applications as needed. To use the software, users only need a compatible web browser and an adequate Internet connection. The idea that users could access applications, anytime, from anywhere, across a global network dates back to the 1960s. This concept has become known as cloud computing and is the underlying concept of SaaS. Today the SaaS market is growing at an astonishing rate, inspiring many companies to consider SaaS as a new model for doing business (figure 1). When considering the use of any SaaS application, product features, risks, legalities, costs and management are all areas that should be reviewed. We will briefly cover each of these and address the common concerns surrounding them. Product Features New SaaS products may need to work within the company's existing business model. For example, let's look at most businesses' basic need for a word processing application. Historically this market has been dominated by Microsoft Office with a market share of over 94%. Google Docs is a major SaaS competitor with less than 2% of the total market share and little sign of changing... half of the document ...... published November 1, 2011. http://insideclouds.com /saas. php.Flusche, Andrew. LegalAndrew.com, "Warning: Google Docs is NOT safe." Last modified September 24, 2007. Accessed October 22, 2011. http://www.legalandrew.com/2007/09/24/warning-google-docs-is-not-safe/.Finch, Amanda. E-Commerce Times, “The Rise of SaaS and Regulatory Risks.” Last modified January 31, 2008. Accessed November 1, 2011. http://www.ecommercetimes.com/story/61448.html.Golden, Bernard. CIO.com, "The Case Against Cloud Computing, Part Four." Last modified February 12, 2009. Accessed October 23, 2011. http://www.cio.com/article/480595/The_Case_Against_Cloud_Computing_Part_Four.Adhikari, Richard. InternetNews.com, “Gartner Warns of Hidden Costs of SaaS.” Last modified February 20, 2009. Accessed October 22, 2011. http://www.internetnews.com/software/article.php/3805151/Gartner Warns on SaaS Hidden Costs.htm.