What is the state of the SaaS market (Size, adoption rate, trends, etc.)?

What are the experiences with the business model (advantages,
disadvantages, lessons learned, etc.)?

(note 1: Generous tip if an example business plan for the SaaS model is found)

(note 2: If the researchers believe these questions need split apart,
please advise)

(note 3: I need this answered on, or before, March 23rd.)

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Clarification of Question by reflector8-ga on 20 Mar 2006 12:31 PST

Despite the frde-ga's assertion in the comment, this is *not* a
homework question.  I have not been in school for nearly 20 years. I
am building a business plan that I hope to execute.

This is an attempt to simplify another question I attempted but with
no response at http://answers.google.com/answers/threadview?id=705472

If anybody has advice as to what it is about these questions that
cause them not to be answered, let me know.  I thought they would be
pretty straight forward -- especially the previous question mentioned
above.

This is obviously a form of 'homework'

However I have spent at least 25 years providing software on 'rental'
(one is really providing consultancy) and it works, but only if the
customer is in a changing environment.

The idea of 'renting' a WP application is laughable
- but if you have something evolving, where new 'products' emerge, say
bonds then it makes a lot of sense for the end clients to share the
costs and pay the software house a stipend.

The cost of sale is astonishingly high, especially in the software industry
- I estimate it at 50% to the parasites, and you still need to fund the real work.

The 'Smorgasbord' approach works quite well, provided the final user
is sensible and is not a terminal case.

If you want another example then dig out where I learnt this stuff.

Basically it works - but not for trivia.

MS provide trivia - if the World stopped today they would have no more income.
- totally legit transfer of licence from one box to a new one.

You can make money out of renting software, I know a bunch who made
GBP 230m at flotation - and oddly they hung on to their shares.

@reflector8-ga

Fair enough, I misjudged your question.

However what you are asking is extremely broad, it is like asking
'what is the state of the automotive industry'

Obviously, you know what you are after, as you have been mulling it
over for some time, but a GA researcher would need a lot more
precision.

Bear in mind, G Answers is very 'public', and postings are stored
forever, so you may feel uncomfortable giving more details.

frde-ga,

I would have thought the web would be full of articles discussing and
sizing this topic given the success some companies are having with
this model (salesforce.com). Clearly not.

As to the broad nature of the question, I would think it would
simplify the question.  Rather than an specific list of things I must
have, I gave a broad area of inquiry for a researcher to find whatever
they can.  Seems like an easy $100.  And if you were to look at my
previous answered questions, you'd see I'm not stingy with the stars
either.

Oh, well.  Not the right forum.  Still enjoy the service.