Software as a Service (SaaS) has been introduced as an innovative way of software provisioning through which Web-based application is delivered as a service. Yet, SaaS model is still immature in concept and little is known about the perceptions of users and providers when understanding benefits of SaaS. For this reason, the paper explores SaaS benefits for Small and Medium Sized Enterprises (SMEs) from the perspective of providers, users during the SaaS life cycle. A conceptual model is developed and tested in a case study. Users and provider have different perceptions on the benefits of SaaS and the benefits are dependent on the maturity. Our findings show that the conceptual model can help to overcome differences in opinion about SaaS benefits at different phases of SaaS life cycle. Promised, perceived, and actual benefits might be different. The conceptual model ought to provide better structural definitions of SaaS benefits although we suggest further research to enrich the model structure by incorporating different aspects of decisions upon the benefits.