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The company I work for is thinking in using Sharepoint 2010 Foundation as the base platform on which to built custom web application to meet specific needs on the market, and sell it as SAAS.

The scenario is this: the developers customize/develop a site to meet the demands, this implies workflows, pages customized in sharepoint designer, additional javascript/jQuery, developing solutions&features and whatever else is needed in terms of customization. This site is supposed to serve as the template on which to instantiate an application for a new customer.

And the development is not a one time thing, there will be future developments to meet the demands. This implies a Test environment and an easy way to propagate the updates on the LIVE environment. Another important aspect is provisioning, it has to be easy create a new instance for a new client.

Do you think sharepoint 2010 is suitable for this? I'm looking forward for your point of view and I would also really appreciate any links pointing me in the right direction.

Update: I'm interested more on the development side the pros and cons. The licensing, marketing is not really my business. Thank you, Mihai

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Good lord no. The licensing and development costs would make it nearly impossible to turn any sort of profit; plus Microsoft already offers hosting for SharePoint, and you don't really want to compete with them on their own product.

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