SAAS is a tight margin business with vendors relying on low cost of sale. Often what gets missed is that hand holding experience which a lot more traditional vendors still provide. Quite a few SAAS vendors also focus their marketing message on the mid to upper market, especially in times of a tougher economy. It still takes time to develop a SAAS sale (believe it or not) whoever you are selling to large or small so I understand where the vendor is coming from. I had a prospect contact me just yesterday saying that they felt one SAAS solutions we offer looked like it would be for a large company. They were a 50 - 60 employee operation who would have been perfectly suited to the SAAS solution. The message the vendor gives is key and trust is essential. Focus on building trust and small business will adopt SAAS but it comes at a price. Can the vendors afford to pay the price?