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One expects a high level of optimism at industry conferences, but the keynote speaker and opening panel discussion at SaaScon in San Francisco went all out.

The business-oriented event for software as a service was layered with references to "tectonic shifts," "new breeds," and "an enterprise that lives within the browser." Tod Loofbourrow, CEO of Authoria even predicted that "everyone will be converted over time."

He might be on to something, with the emphasis on "over time." Citing an Aberdeen Group study released weeks ago, Ann Winblad, a partner with the investment firm of Hummer Winblad, noted that just over 50 percent of companies surveyed were considering outsourcing at least one core business function to an on-demand model within the next year.

Much of the day's discussion focused on the economic benefit of automation and the relative ease with which businesses can now connect employees, services, and customers by renting applications over the Internet.

Greg Gianforte, CEO of RightNow Technologies, was upbeat about the subscription model's future: "SaaS 2.0 will be less about simplification and more about gaining better insight into customers and partners while improving service delivery levels."

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