RFI: Will SaaS products be used by Enterprise IT departments?

I’m curious about SaaS adoption by large (I’m talking big) companies. I don’t know if any of my following assumptions are correct. I’m hoping that people can add comments based on real-world experience and numbers.

Assumption 1: Large IT departments require a strenuous testing period for any new software or upgrades before the new products are rolled out through the organization. True or False?

Assumption 2: Products provided by SaaS companies are updated when the SaaS company identifies a need. True or False?

Question 1: What do enterprise IT departments think about SaaS?

Question 2: What about the upgrade process?

Question 3: What about data security issues?

Question 4: What about being able to get data out if the SaaS company fails or the Enterprise company decides to change vendors?

I think SaaS has a lot of potential, I’m wondering if these types of services are better suited for small to mid-size companies or if the large companies also see them as valuable.

My thoughts were prompted by this article by Don Dodge: "SaaS – new software model, new challenges".

Technorati tags: SaaS, Don Dodge, IT, Enterprise