Generally big enterprises go in for licenced software due to security and convenience . Also there i sthe feel good factor of being in control.But what about SME organisations . Can they afford the luxury of above mentioned features. Obviously no. B'cos affordability for small organistions is a big issue. Also they can not have expensive skilled staff required for manning and maintaining these applications.
Hense they can go for SaaS. Although SaaS has not picked up as a movement in India but SME's are adopting it for the purpose of CRM and Enterprise Apps.