Until now, businesses, from SMBs to large enterprises, had to build and maintain their own IT infrastructure to run on-premises applications. The advent of Software-as-a-Service (SaaS) offers businesses the very same applications typically accessed using a web browser. The applications also feature fully seamless product upgrades, some integration with existing data and systems, and lower costs due to subscription-based usage pricing.
More and more companies are adopting SaaS solutions for new requirements and replacing on-premise applications with SaaS solutions. It simply does not make sense to run hardware in a secure, redundant facility, as IT is increasingly seen as a non-core function that can be cut back.
And now most ISVs and other application providers and integrators are rapidly moving their applications into the Cloud. Cloud Computing provides reliable, scalable, and cost-effective computing resources to host SaaS applications.