Software as a service has the advantages of tactical use of software services for meeting the spot needs of its customers without busting its budget or derailing other projects, especially for Web-centered applications that have short term use. The risk to IT, however, is in rigid adherence to avoidance of use of services that are not directly under its control. Line-of-business managers will want to circumvent IT instead of working with IT, which is detrimental to all. For the business organization where IT is small or very dedicated to strategic functions, software as a service provides a way to obtain required applications quickly so that IT can focus on strategic long term goals. With SaaS, competitiveness can be enhanced because IT can do more with less and because the organization uses the services needed when needed. Key to successful use of SaaS is the full vetting of providers, and prospective users should choose a vendor that is not likely to go out of business or be acquired by another vendor that does not value customers as much. Companies such as NaviSite, USi, and Corio have survived the ASP period and are now providing SaaS. USi continues to provide application services to Global 2000 companies, and NaviSite targets the midsize enterprise market. Enterprise applications, however, do not fit well when sold as a service due to technology reasons and licensing models. In an IT Architect Reader Poll on factors that prompted the chose of an application service, most respondents cited lower cost as an important factor, while a significant drawback was the ability of the service provider to secure data sufficiently well.