Saas Startup in India

We are currently in design stage for a SaaS product aiming at Indian market. Our initial (fairly local) market survey suggests that there is a demand for this product. The desktop version of this product is already been used by our customers for years and they are happy to migrate to Web version should we develop one.

Among others one of the main question is , is India ready for SaaS product where customers pay by subscription monthly (or quarterly) with a minimum contract and they know if we (Customer) dont pay then the subscription will be cancelled and we wont have access to the product/system/data. This particular question is coming from the desktop product market where customer pays once and then pay a nominal annual fees once a year for maintenance but they have full access to the product once they purchase it.

If this model has flows in this particular environment (country) then are there any alternative suggestions via which we can have a SaaS product. The product is for Small to medium size businesses.

Thanks,