> SaaS is out sourced IT. Plenty of SaaS could open source their entire code base and it would have little effect on sales; people would gladly still pay for it

> SaaS is out sourced IT. Plenty of SaaS could open source their entire code base and it would have little effect on sales; people would gladly still pay for it to be hosted. The problem is that with open source, anybody can be the SaaS provider and make the money from the open source software. In fact, companies will be more willing to go with either the bigger names or providers they have existing contracts with, than a small open source company. SaaS inherently favors the larger corporations.