I am not the first one to say and lots of industry leaders and enterprise CIOs have been pointing it out that there might be cases where SAAS or Cloud Computing may not be right answer for some enterprises.
In a recent article at IT World Canada, titled “Why SAAS isn’t always the answer”, looks into one specific case, where Manitoba Insurace stayed away from SAAS model largely due to USA Patriot Act.
Yes for businesses in Canada or other countries, its very key to look into the legal aspects and security concerns before signing up with a US based SAAS or Cloud Computing vendor who only has a US data center.
Even for US businesses in the small to medium enterprise segment, from my recent discussion with a CEO, it was very clear, that “Security” is a key factor that may hinder businesses from adopting SAAS or cloud computing.
I am not rushing and concluding about the longer term viability of the business models of the SAAS or Cloud Computing vendors. My inferences lead me to believe that both on-Demand (SAAS, Cloud etc.,) and on-Premise way of delivering software solution will continue to co-exist and the split between the two may vary on FAD of the month or the year.
If you have more time in your hand, this article at CIO.com is a worthy read