The benefits of software-as-a-service (SaaS) should not be overlooked on account of its perceived risks, despite apprehension from CIOs over off-premises software provision.

Nicholas Lindop, director and general manager of Pentagon Chemicals, told delegates at a SAP event for small and medium-sized businesses how using the CRM firm's SaaS offering has allowed Pentagon to review its disparate systems and platforms, and focus more on core business.

Pentagon was already looking for a SaaS option and was convinced about the security of the offering, Lindop told Computing later.

"SaaS fitted exactly with our strategic intent, which was to outsource our non-core functions," he said. "Of course security questions were raised, but we were soon convinced by the encryption."

Lindop added that Pentagon had no concerns from a risk perspective because it knew that SAP would not let this fail, as it was bringing a new offering to the market.

"We are not risk averse and I believe that accepting a certain level of risk is intrinsic to success," he said.

Last week, Computing reported on concerns that CIOs are not ready to move away from on-premises software.