Due to changing software licensing models, software vendors face rising competitive pressure to grow their core businesses. Shorter product cycle times are forcing them to rush into new product introductions, and focus on expanding their market share. The economics are also forcing them to align their valuable resources to critical tasks while attempting to reduce back-office costs. Similarly, SMEs and subsidiaries/divisions of larger companies find it increasingly time consuming and costly to develop, implement and support systems, maintain an IT infrastructure, find and retain scarce technical resources, and control IT expenditures. SaaS (Software-as-a-Service) is the answer to these challenges. As an alternative to buying software and paying for periodic upgrades, paying for and maintaining technical resources and infrastructure, SaaS may provide a better alternative for many existing and future solutions.