In this Strategic Perspective we analyze Saugatuck survey data from IT executives worldwide to examine 1) the expected timeframes for a shift away from on-premise toward SaaS solutions; 2) the expected mix of packaged and custom developed solutions between on-premise and SaaS; and 3) modeling how much SaaS is likely to replace on-premise applications. What we find is that on-premise software solutions have tremendous staying power in the face of rampant enthusiasm for SaaS.