I recently recorded a webinar for TechTarget’s Expert Advice Center re: the “Myths and Realities of SaaS” that identified six common myths about SaaS. These myths are:

1. SaaS is just another over-hyped fad that will only achieve limited market penetration.
2. SaaS is just another form of ASPs.
3. SaaS solutions only address CRM/SFA needs.
4. SaaS is an insignificant sideshow in the evolution of overall software industry.
5. SaaS is easy to deliver and many providers will enter the market.
6. Selecting SaaS is an either/or proposition for organizations.

There are many more myths that I could address, but I’d like to dedicate this post to the myth that SaaS is a simple, one-size-fits-all application solution which inherently falls short in mid- to large-scale organizations which require significant customization and integration.

First, many mid- and large-scale organizations are discovering that their application needs are not as unique or unusual as they thought.

Second, SaaS providers such as Intacct and Oco are adding customization and integration features to their application solutions.

Third, the SaaS providers are establishing ‘ecosystems’ of alliance partners who are designing their solutions to easily integrate with one another. Salesforce.com’s AppExchange is the most prominent example of the SaaS ecosystems of today. SQLFusion has established a comparable clearinghouse of open-source SaaS solutions, such as SugarCRM.

Fourth, a growing array of SaaS solution providers are offering on-demand customization and integration tools, such as Nsite and StrikeIron which has a growing portfolio of application program interfaces (APIs).

Finally, many organizations recognize that SaaS isn’t a panacea that can solve all of their specific application needs, and are comfortable employing specialized consulting firms like BlueWolf Group or data integration companies like Pervasive Software to address their unique IT/business requirements.

All of these factors are quickly coalescing to satisfy mid- and large-scale enterprise SaaS customization and integration demands.