Two camps are evolving in the software world. Those that see SaaS (Software as a Service) as the future of software delivery to end users and those that don’t.
Entrepreneurs and innovators see that providing access to their software over the internet through a hosting provider as the main viable method of delivery to consumers. Establishing traditional channels via distributors and resellers is too cost prohibitive, as well as potentially a prohibitive barrier to entry. This is the great disinter-mediation that is happening with software.
It is also some what silent from the perspective of people working inside of larger corporates and government organisations.
At this time, the majority of IT executives perceive that their organisations will continue to install software on-premise and support it. For the majority of IT consulting organisations this is still a lucrative business to persue. There is services revenue for customisation, training, installation & support as well as from the initial product sale, and with some vendors from support renewals.
So what you can see is a conflict developing here. There are groups of people that want to make the SaaS model work to break down the barriers and obstacles that are stopping them from selling their products. On the other side, there are also groups of people that want to preserve the current status quo with on-premise software installations.
If they do get it, they can see the world of hurt that is coming.