Gartner analyst Rolf Jester downplayed the claims.

He said vendors such as Microsoft will not be stricken by the on-demand model because they draw considerable revenue from professional services like training and maintenance.

"Microsoft will not abandon their customers if they enter the SaaS market," Jester said.

"While there is some value in the arguments between the delivery models, SaaS isn't just about established software players.

"We are seeing new kinds of highly customer-centric services as the world shifts toward an access-rather-than-ownership model."