SaaS: a new acronym

SaaS means Software as a Service. It is not a new concept, but Gartner believes it will take off in the next five years. In short, SaaS is a hosted, on-demand accessed solution that companies can customize to meet their needs. CRM, Human resources, or sales force automation are the current enterprise most favorites applications.

Garner forecasts that Saas currently account for about 5% of enterprise application software, and could grow to 25% in 2011.