Software as a Service (SaaS) applications have become “cloud backup applications”, and are increasingly popular. According to a survey of enterprise customers by Aberdeen Group, around 1/2 of firms are using the cloud for Customer Relationship Management (CRM) software and email (with Exchange making up 19%). The high adoption rate reflects software manufacturer’s focus on recurring monthly revenue models versus the older sales models where software was purchased with yearly support or maintenance fees. By hosting their applications, software vendors such as Microsoft CRM and Salesforce.com create higher profit margins and create tighter linkage to the end user. This model will eventually diminish, and disintermediate the importance of trusted consultants and IT resellers which account for approximately 30% of the traditional cost of IT.