[AfrICANN-discuss] Delivering Software as a service

Anne-Rachel Inné annerachel at gmail.com
Fri Jun 15 17:40:22 SAST 2007

The article is too long so I am attaching a PDF of it.
Article at a glance:
Delivering software as a service

    * Traditionally, companies buy software and then install and
maintain these applications on their own machines. That model is
giving way to one where companies will buy subscriptions and access
services over the Internet from software developers that host their
own applications.
    * Some applications will migrate to the new delivery model faster
than others, but all
software makers should begin to explore the economics and necessary
capabilities for online delivery.
    * Revenue models for these developers will change, since software
as a service delivers fees over time rather than large up-front
license purchases.
    * Customer service and R&D capabilities will also need to adjust
to the reality of ongoing relationships with customers rather than
periodic upgrades.
This article contains the following exhibits:

    * Exhibit 1: The economics of companies that deliver software as a
service differ from those of large software companies, though they are
similar to those of smaller ones.
    * Exhibit 2: Applications are likely to migrate from traditional
delivery to software as a service at different times for enterprise
customers vs. small and midsize businesses.
    * Sidebar exhibit: Software as a service offers a reduction in
total cost of ownership.

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