The trend toward on demand applications represents a change in the enterprise software industry that has been brought about by customer demand for rapid and ongoing value and is a reaction against upfront license fees and lengthy implementations.
On demand solutions are growing in popularity and are trending to become the standard in areas that are mission critical/non core. As vendors rush to meet the demand for on demand solutions, potential buyers should push back on high upfront fees and make sure that the cost of the project is spread over the contract's lifetime.
Companies should also look out for any hidden extra costs and closely examine the services included in the offering to make sure that they understand what their responsibilities and true costs of ownership will be.
About the Author: Steve Savignano, the chairman and CEO of Ketera Technologies, has more than 20 years experience applying technology to deliver value across a number of different industries. Prior to Ketera, Steve served as a senior executive at a number of industry leading business application providers.
For more information about the issue of on demand, please read " Cutting Through the On Demand Hype," in the December/January 2004 issue of Supply & Demand Chain Executive.