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'