Fears over integration with existing legacy systems prevents many companies from adopting software-as-a-service (SaaS) technologies, according to on-demand consultancy Saaspoint.

Many companies are missing out on the benefits of SaaS because they believe that integration with Oracle, SAP or Sage is impossible or overly complex and time consuming.

Frank McCracken, founder and executive vice president at Saaspoint, told delegates at the SIIA OnDemand conference that SaaS applications vendors have a better track record of maintaining stable APIs than legacy on-premise vendors.

"It is true that you need to adopt a different way of thinking to traditional integration, but this should not deter CIOs from embracing the benefits which the on-demand model brings," he said.

McCracken reckons that by adopting SaaS companies can retain their legacy on-premise software, and even enhance its usability by integrating it with the hosted services.

"The war of words between SaaS and traditional on-premise software may have led some to believe that it is a case of one or other," he added.

"It is not. Traditional software can live with on-demand if you approach it intelligently."

Adopting the right integration model ensures that companies benefit immediately from regular upgrades, thereby eliminating traditional headaches around software upgrades and compatibility, according to McCracken.

The SIIA OnDemand conference, run by the Software & Information Industry Association, aims to address all factors surrounding the enabling and delivering of SaaS.