Here are “Top 8 Reasons Why companies Shun SaaS” according to Networkworld:

66% Integration issues
61% Total cost of ownership concerns
55% Lack of customization
50% Security concerns
42% “We can’t find the specific application we need”
39% Complicated pricing models
39% Application performance
34% “We’re locked in with our current vendor”
(Note: Multiple responses accepted… that’ll be why the percentages add up to more than 100 then…)

I’d be interested to hear if anybody shares any of these concerns, because they really seem to come down to one thing: lack of knowledge – a market just a bit scared by the unknown. I mean, some of the concerns are completely counter to the truth… “lack of customization”? I think at TheWebService we’d like to count ourselves as at the forefront of DaaS (Data as a Service) and all the customization possibilities that means… and there’s nothing better than our SaaS for mashups.  the big players will always be able to afford to have comletely custom-made solutions, and they can just get on with it – but the smaller companies can be catered for, there’d no doubt about that!

Costs aren’t always clearly explained.  I think a pay-as-you-go model is the simpleast and most transparent way of going about it (and surprise surprise, that’s what’s used at Postcode Anywhere and TheWebService!) … there’s nothing complicated about that… it’s just lack of familiarity that’s the problem.