Is Software As a Service (SaaS) Becoming Mainstream?

A recent report by Gartner has indicated that international Software as a Service (SaaS) sales will surpass 5.5 billion in 2010. Is now the time to change to SaaS?
SaaS is software which is installed and managed on a remote machine with a supplier that is hosting. Generally, this is a cloud hosting supplier whereby the installation could be cloned and easily redeployed for every added customer. The software installed can be anything from Microsoft products, a specialist bookkeeping software program or some service you may normally get out of your local PC.
SaaS continues to be available for several years now and recent years have found the product grow in to a mainstream offering for a lot of hosting providers, although initially harassed by service issues. According to Gartner, SaaS sales was 10% of the total managed hosting marketplace in 2009, but is forecast to increase to 16% from the end of 2010. This is showing signs of accelerating increase in the months ahead and is the fastest growing sector of the business.
So what’s changed? Why has SaaS unexpectedly become more accepted to the mainstream?
SaaS initially suffered from low speed communications undependable and connections connectivity that hampered its ability to be a feasible option to local desktop computer programs. Organizations shortly found that developed in to a marketplace broad feeling that SaaS wouldn’t be embraced in almost any substantial manner and that their productivity was highly sensitive to the access to the communications links. Recently however, the price for high speed connectivity has dropped considerably, and customers have good failover systems set up to make certain no service loss. Moreover, SaaS suppliers have been given an edge due to their low start up costs and reduced capital expenditure by the recent squeeze on IT budgets. When they are able to lease them to get a low monthly fee, customers do not require making high-priced purchases of software products.