In the recent past, we find some of the traditional software vendors moving to on-demand based offering. One of the major growth drivers for these companies is their existing on-premise customers. Companies like SAP, which has a huge 30+Billion $ revenue today, might make it attractive for its existing on-premise customer to move on-demand -- in fact, its hybrid model where the same software can run both on on-demand and on-premise make it very attractive and easy to do this.
But, there is a catch, what will happen to custom applications or extensions these existing customers have built around these software, unless SAP or other major vendors are able to provide a platform and a migration path for these applications to make them also co-exist in their on-demand system, they will not be successful in migrating these customers to their on-demand eco system.
I would be very-much interested to see how majors like SAP provide a migration path for their existing on-premise customers.
Technorati tags: SaaS, Software as a Service, SAP
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