IntroductionThis document will address some of the questions frequently raised by SMART Consultants' clients regarding the conversion from in-house IT to Internet-based IT, the cloud, using software as a service (SaaS). Additionally, it will provide the foundational knowledge needed to perform an analysis of their business to determine if SaaS is a suitable model. We'll first 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. Conversely, the software-as-a-service model allows users to access online applications as needed. Users only need a compatible web browser and a suitable Internet connection to use the software. The idea that users could access applications anytime, from anywhere, over a global network dates back to the 1960s. This concept is now known as cloud computing and it is this concept that forms the foundation of SaaS. Today, the SaaS market is growing at an astonishing pace, leading many companies to consider SaaS as a new business management model (Figure 1). When considering the use of a SaaS application, product features, risks, legalities, costs and management are all areas that need to be examined. We will briefly discuss 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. As an example, let's look at the basic need most businesses have for a word processing application. Historically, this market has been dominated by Microsoft Office with over 94% market share. Google Docs is a leading SaaS competitor with less than 2% total market share and little sign of change...... middle of paper ...... published November 1, 2011. http: //insideclouds.com/saas.php.Flusche, Andrew. LegalAndrew.com, "Warning: Google Docs is NOT secure." Last edited 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 Your 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 edited 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 of Hidden Costs of SaaS.htm.