A couple of years ago we sold a solution to a large financial institution. We provided a real time view on to customer retention, loyalty and advocacy for the organization as a whole and for each and every branch across the country. This provided three major benefits. Firstly, it gave all levels of management with information they had never even seen, the information was provided much much faster than using the previous method and it reduced their annual customer research costs by around 50%. The project was stopped by the I.T. department because they "couldn't host data outside of their datacentre". The organisation in question validated our environment, they even tried to break our environment but couldn't. But, because we were SaaS, the solution wasn't seen as viable.
I have not yet had one objection to us being a SaaS provider from a Salesforce.com customer. Now, that's hardly surprising but anything that reduces the number of objections I receive during my sales process is fine by me. Salesforce customers understand SaaS, believe in SaaS and are willing to go with it for other applications.
P.S. The organisation in the scenario above came back to us very recently to re-open conversations about rebuilding what we gave them. They still haven't been able to match what we gave them and now, SaaS is acceptable...
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