This IDC study investigates the adoption of software as a service (SaaS) among small businesses with fewer than 100 employees and discusses overall attitudes regarding the delivery model. SaaS providers have feverishly come out of the gates and announced plans to target small and medium-sized businesses (SMBs) with their respective offerings. However, despite the growing number of service providers indicating that the SMB segment is their sweet spot, the SMB target community remains relatively untapped regarding SaaS adoption.

"There is a great potential for SaaS in small businesses with fewer than 100 employees, and IDC believes that opportunity also expands to medium-sized and large enterprises," said Erin TenWolde, senior analyst for IDC's SaaS research practice. "IDC anticipates that there will be an SMB collision course that will happen with SaaS offerings, as more vendors target this community of end users."