Lam noted that businesses are typically starting small and with simpler applications which require less customization and are less critical in terms of performance expectations.

Such tools are also easier to create a business case for SaaS and have greater potential for quick return and value, she added.

Microsoft is working with an extensive list of partners to deliver more SaaS offerings to Hong Kong with tools like its Business Productivity Suite due next year. One of Microsoft's partners is data center and hosting provider, Rackspace Hosting. Jim Fagan, Rackspace's managing director for Asia Pacific observed that many businesses in Hong Kong had a good awareness of the SaaS model but had yet to reconcile how it would fit into their business. "Applying it to their own business and making it work for them is the challenge for many," he said.

Hooper agreed and his dealings with firms in Hong Kong so far showed how companies were seeing e-mail as an obvious choice but were also attracted to other areas. These included conferencing and tools like Sharepoint but users clearly needed greater consideration on how best to get the value from these offerings on a SaaS model, added Hooper.