But just like there was building up to the tech bubble in the late 90’s there are hangers on – people selling more hot air than clouds. It is always a buyer-beware market and even more so in times when some people are both pressed to save money and to make it in a tight market.

The upside is – there is a real push for “try before you buy” in all cloud offerings – and often even when there isn’t – the price points are low enough that a single business unit implementation or “proof of concept” is a workable first step. There is a risk in all business software – licensed, on-premise or in the cloud. The cost of implementation and cost-basis of cloud-based alternatives however gives them a distinct advantage.

In large part, the challenge comes from the fact that SaaS faces credibility issues. These, in turn, are raised by unprofessional self-proclaimed experts and shady practices.

Bruno Collet
Blog: Execution in the Information Age