Potential Saas users may be happy to hear that the current economic issues might actually help them lower their costs.

The benefit of the Saas model is that companies no longer have to outlay large amounts of money to use and host the applications. Smaller companies are especially suited to the Saas model as they usually have very little in-house technical support.

The economic pressure may cause some prices to drop, especially where there is a lot of competition. SalesForce.com indicated at an investor conference in New York, that it does not believe that the crisis will affect them, but other companies are more likely to feel the pressure.

To some degree the Saas market is insulated from the market effects, because of the subscription nature of the market. If the market does not stabilise and Businesses continue to freeze their IT budgets it is inevitable that more companies will take up Saas and other cloud based services.

[Via ComputerWorld]