Falk is taking the next step. Something I think will be repeated time and again. The Members Group had been reluctant to deploy a CRM application because of the bad trade-press that traditional CRM had gotten during the past several years.

"SAAS is a great way to put our toe in the water," Falk says.

From a business perspective, Falk believes because SAAS is more nimble, with upgrades typically four times a year, it allows his company to be more nimble.

So, is SAAS a better alternative to on-premises solutions? In some cases, yes, but technology is only part of the story. I think SAAS providers have another edge over traditional enterprise software companies. They haven't grown fat and happy. They are lean and hungry. As SAAS is adopted by more and more enterprise companies, let's hope that doesn't change.