On SaaS

We have been talking about SaaS in class.

Here are my 2 cents worth. Not that these are any revolutionary ideas, but just to register a thought...
The biggest problem with SaaS and cloud is TRUST. It is true that lowering expenses may be a big benefit for users. But for big corporations, these are high-stakes information we are talking about e.g. financial data and information of clients. There need to be lot of security and high confidence to have them reside in a third party server somewhere out of their surveillance. On the other hand, for SMEs, the cost-savings may not be significant for them to risk compromising the integrity of their data. These seem to suggest that SaaS and cloud might not take-off, since neither the big boys nor the small players see benefits that outweigh the downside. However, with big names (such as Google and Amazon) putting their stake in this, the level of trust will increase, and cloud and SaaS will eventually be the command of the day. When cloud and SaaS becomes widely accepted and practiced, opportunities for smaller vendors will ensue.