Executive Briefings

A Definition of the 'Cloud' Might Be Useful

The last two years have brought an explosion of cloud-based Software as a Service (SaaS) provided in long-term subscription or on-demand models. Both new application providers and traditional enterprise software license firms have provided new versions of their software and services to ensure a market presence in these sectors of the technology market (though there are still a few hold-outs that sell only on-premise licenses).

There is plenty of good news here, since clearly, the multi-tenant architecture is more economical to operate for both users and technology providers. By eliminating the need to support many versions (thousands) of the software, both parties win with the reduction or elimination of annual support costs and fees that can be as high as 28 percent per year.

It's useful to compare the the cost of "ripping and replacing", which can be highly disruptive to an organization, with SaaS's "silent" upgrades that "evolve" the user into adopting the innovative new options to their software as they become available. But let's back up and define a few things, since it appears that there is a lot of intentional or unintentional obfuscation going on in the market right now regarding what is cloud.

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Keywords SaaS, supply chain management IT, supply chain solutions, defining the 'cloud'

There is plenty of good news here, since clearly, the multi-tenant architecture is more economical to operate for both users and technology providers. By eliminating the need to support many versions (thousands) of the software, both parties win with the reduction or elimination of annual support costs and fees that can be as high as 28 percent per year.

It's useful to compare the the cost of "ripping and replacing", which can be highly disruptive to an organization, with SaaS's "silent" upgrades that "evolve" the user into adopting the innovative new options to their software as they become available. But let's back up and define a few things, since it appears that there is a lot of intentional or unintentional obfuscation going on in the market right now regarding what is cloud.

Read Full Article


Keywords SaaS, supply chain management IT, supply chain solutions, defining the 'cloud'