Is 2006 going to be the year that on-demand/SaaS models eventually surplant traditional enterprise software?
A recent article in the Investor's Business Daily talks about the growing demand for on-demand software.
Even Steve Ballmer, chief executive of Microsoft, (MSFT) expects on-demand software, also called software as a service, or SaaS, to soon become the standard for business computing. That's quite a leap, coming as it does from the head of the world's largest software maker, almost all of it still conventional software.
"I think when we look back five, six, seven years from now, all software will evolve to be a service," Ballmer said in a speech this month in Washington, D.C.
Just a few days before Dan Frost of the San Francisco Chronicle wrote:
In one of the biggest technology trends of the year now ending, Benioff's model -- alternately known as "on-demand" software or "software as a service," in which companies no longer buy multimillion dollar suites of software but instead pay a few hundred or thousand dollars for programs that run over the Internet -- is catching on fast.