Salesforce.com has seen massive growth in recent years for hosted software and only this week Webcentral launched an online sales hub for SAAS applications.

But SAAS is still seen as more of an option for small to medium sized businesses (SMBs).

Johnstone Shire Council IT manager James Scullen said that as a local government authority, the organization uses a lot of customized and specialist programs and wouldn't benefit from the SAAS model.

"I think it would be beneficial for those able to use it, but given our structure we haven't considered it," he said.

Morrison Motors CIO Kuma Ekanayake believes SAAS is a good idea for companies who have structural and employee fluctuations.