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This paper mainly studies the potential SaaS platform provider that may develop quickly in China. As the software vendors promoting SaaS in the market, Chinese telecommunication operators pay attentions to SaaS during their transformation from traditional telecommunication service provider to information service provider. China Telecom is one of them. China Telecom, especially after the reorganization earlier this year, has all the elements of leading the SaaS market in a few years. The article firstly discusses the advantages of SaaS, its development and market scale in China. Then the paper distinguishes two types of SaaS vendor, software vendors and SaaS platform providers, by intellectual property and analyzes their target customer respectively. After describing current SaaS market situation for the two kinds of vendor, urgent problems they both faced are discussed. The advantages and strategies of China Telecom which is the most potential SaaS platform provider in competition are discussed at last.