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QUOCIRCA INSIGHT REPORT May 2008
On-premise an d on-demandSaaS is now mainstream but will never be ubiquitous Contacts: The software as a service (SaaS) delivery model has matured to such an extent that there is now an on-Bob Tarzey demand component to most software applications, whether it is online help, automated updates or the Quocirca Ltd main application engine. At the same time, many vendors are realising that to provide a satisfactory end Tel +44 1753 855794 user experience, total reliance on a web browser is not always enough and a desktop component is often bob.tarzey@quocirca.com needed. The need to link with on-premise components extends beyond the desktop to legacy software maintained internally and as business processes, that span organisations, are linked together using a mix Clive Longbottom of on-premise and on-demand applications, expert help is still needed to integrate it all.Quocirca LtdTel +44 118 945 3360 . Most consumer and business applications have an on-demand component There is a grey scale between pure on-demand and pure on-premise with few applications being truly clive.longbottom@quocirca.com black or white. The reality today is nearly always a mix of on-premise software and on-demand serv-Kam Dhillon ices.Microsoft . For many applications an on-premise component is needed to enrich the user experienceTel +44 7966796707 Whether it is iTunes or Flickr; Microsoft Live Meeting or salesforce.com, on-demand applications kamd@microsoft.com often have a desktop component that enriches the end user experience and, when necessary, allows off-line use.. On-demand delivery is attractive to businesses because it helps them manage costs, provides Research Note: high availability and flexible accessPaying monthly fees out of operational expenditure for on-demand applications with high availability This report has been written guaranteed gives businesses of all sizes the confidence and flexibility to embed them in critical busi-by Quocirca in conjunction ness processes.with Microsoft to address cer-tain issues faced by independ- . Business processes are only as strong as the weakest link in the applications that support thement software vendors (ISVs) No organisation wants to be the one that causes a business process to seize up due to IT failure. On-and the users of the products demand applications allow businesses to share resources, with the responsibility for availability being rdand services. outsourced to a 3 party managed service providers (MSP).The report draws on Quocir- . Some level of integration of on-demand services with legacy applications and internal workflow ca's knowledge of the tech- will always be necessarynology and business issues Web services with standard interfaces such as SOAP and REST make such integration easier, but as faced by ISVs and their cus- business processes become more complex and span multiple organisations, businesses still need help tomers and suppliers, and pro- from integrators.vides advice on the approach these organisations should . Many new independent software vendors (ISVs) are building in on-demand components from take to create a more effective the startand efficient environment for It is not just getting the technology right but the business model too. MSPs are key to helping with future growth. both aspects.During the preparation of . Existing ISVs are making the move to on-demand too, but they face additional challengesthis report, Quocirca has spo- Again, it is not just about adapting code and the security embedded in it, but about adopting new ken to a number of ISVs, IT business models and coping with the changes in cash flow and expectations of stakeholders that this vendors and managed service entails.providers (MSPs). Quocirca is grateful for their time and CONCLUSION: The SaaS delivery model is thriving because it can in a way that was not possible 15 insights. years ago, but also because it is good for the users of software, businesses and consumers alike. On-demand components of software applications are now so pervasive that there is less and less need to Quocirca would like to thank highlight the fact as it becomes de facto. However, on-demand is not a panacea but an integral part of the stMicrosoft for its sponsorship delivery of 21 century software applications that will always be a mix of software plus services-both of this report. on-premise and on-demand.
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