Is it On-Demand or Just Outsourced?

There is much confusion in the marketplace about On-Demand software solutions. This confusion is largely caused by software vendors playing catch-up and offering 'quick-fix', 'whipped cream on roadkill' answers to a more fundamental movement in the industry.


If your software vendor is offering an On-Demand solution, get some details. Often, as with QAD's 'new' release, you will find that you are merely paying someone else to deal with the problems of traditional, on-premise software. When Customer A signs up, the provider (often a third party, not the software vendor) will buy a rack of servers and disk space and create a fresh instance of the software specifically for Customer A. When Customer B signs up, they buy another rack of servers and disk space for the new customer. When Customer A wants to upgrade the software, someone (the Customer or the provider) still needs to go through the planning and upgrade process for just that customer.


Multi-tenant, hosted solutions such as Salesforce.com, NetSuite and Plexus Online offer distinct advantages. Chief among these is the ease with which the software is kept current and the cost savings associated with a shared infrastructure. Some of the cost savings come from using a simple web browser to perform any transaction in the system - not just those that have been 'web-enabled'. Ask the software vendor to demonstrate the entire system from one of your computers without loading any software on it beforehand.


The 'Outsourced' model just adds cost. There is no less equipment or hassle and the provider has to make a profit for taking the hassle off your hands.