Monday, June 1, 2009

Should SaaS Vendors Offer On-Premise Options?

The answer to the question as posted, in my opinion, is "Why not?" It's like asking "Should Ford's Model T have been made available in colors other than black?" I think the real question here is "Can the SaaS Vendor Offer On-Premise Options?" The answer to this question is much more involved as it depends on the vendor's business model and long-term vision/strategy, what exactly the SaaS vendor is offering, the variability and configurability of the offering, and so forth. But even if the SaaS vendor could somehow package up an "on site" version of its offering, could the client "afford" it with the required initial capital investment, ongoing support expenses, and appropriately skilled resources?

* Originally posted on ebizQ's SaaS Forum on June 1, 2009

1 comment:

  1. As I'm sure you realize Tarak, at the point this occurs a vendor will not be a 'SaaS' vendor -- they'll just be a vendor of 'Enterprise Software'. Similar to how all large Enterprise Software firms are currently at least exploring adding SaaS to their model. The point being, its just labels, at that point.

    But most of the current SaaS vendors will not seek to expand in that direction, I wouldn't think.

    Mark J. Sandefur

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