Here are some thoughts on the subject to spark off discussion:

The SaaS (Software as a Service) model is an interesting development in the enterprise software segment. My predictions are that:

We could see investment in SaaS companies in the India-US corridor with a lot of development and support located out of India.

I also think the SaaS model offers an opportunity for Indian IT companies to enter the software product space. Indian IT companies have hitherto acquired niche consultimg companies. They may acquire enterprise software product compoanies and morph them to a more managed services organizations.

Some more detailed thoughts are here

I would love to connect with folks who are thinking of these opportunities.