Demand for Software-as-a-Service (SaaS)-based solutions is strong. No question about that, but less obvious are the limits and hidden liabilities of this popular business model.

The vendor data looks impressive. Last October, Microsoft announced commercial users of Office 365 had reached 120 million. Midway through last year, SaaS pioneer Salesforce said it had hit an annual run-rate of more than $10 billion USD. Analysts also confirm this big picture. Market intelligence firm IDC, for instance, expects SaaS to capture nearly two-thirds of the forecast $160 billion USD global public cloud services and infrastructure spend in 2018.

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