SuccessFactors has been built over the Web. "A lot of companies still are not comfortable with that, but that's really how we've driven it," Dalgaard said.

SaaS still has a way to grow, but "not too long from now, people aren't going to buy software any other way," said Dalgaard.

"It's a great market to be in SaaS right now. It's for real," he said.