"The Internet-hosted software model has arrived, but hasn’t matured" is the message from a US conference on Software as a Service (SaaS), according to SaaS is OK, but Not Yet Sassy, an article on Red Herring.
Adoption issues included integration with older packaged software systems and many SaaS vendors’ lack of a track record. However, there were signs of increasing adoption, and also willingness by venture capitalists to invest in SaaS startups.