SaaS Fuels E-Commerce

"By 2013, 90 percent of e-commerce sites will use at least one product from software as a service, or SaaS vendors...[a]nd 40 percent of e-commerce sites will use a complete SaaS solution," according to a Gartner report released earlier this year.

Businesses no longer operate just in the physical environment. As people increasingly look to online sources for information, companies are moving into the virtual marketplace thanks to the Internet. When firms conduct business electronically, they are engaging in what is known as "e-business." E-business is a broad term that refers to the buying and selling of goods and services, servicing customers, collaborating with business partners, conducting e-learning, and processing electronic transactions via a computer network.

SaaS, which enables businesses to access applications over a network instead of purchasing expensive packaged enterprise applications, is becoming a great way for smaller firms to get involved in e-business. SaaS is also a great option for larger companies wanting to experiment in new markets. According to Richard Adhikari's article "SaaS E-Commerce Services on the Rise," the convenience and low cost of SaaS will "lure new entrants, small businesses, and departments of large corporations to e-commerce delivered as a service." Although big players in the e-business game will most likely strive to protect their unique position by custom building their e-commerce sites, SaaS provides a viable approach for others to join the e-business playing field.