The Growing Trend of Online, On-Demand Software

For many years, software has been designed to work as applications installed on local machines. Everything from simple word-processing to high-end graphics applications has followed this traditional model. Broadband Internet access has been rapidly penetrating the U.S. market over the past several years, allowing a new model of software distribution and usage to emerge. We are at the beginning stages of rapid growth of online, on-demand applications.

This new paradigm has several advantages, especially for businesses. A major benefit is convenience. On-demand applications are hosted on an Internet server making them accessible 24 hours a day, 7 days a week from any computer connected to the Internet. A user does not have to wait to get back to the office in order to use the application. They can be anywhere - as long as they have an Internet connection and a web browser, they can access and use the application. Another major benefit is savings. Typically, organizations purchase software licenses for every computer they install the application on. This can quickly escalate to costs beyond set budgets. In large enterprise applications, the upfront investment is significant, easily reaching six figures. On-demand applications typically allow for multiple users and are not dependent upon machines, just users. Also, the setup and licensing fees require a much smaller investment and scale more appropriately with organizational needs.

Some major suppliers of on-demand applications include SalesForce.com, Concur Technologies, Google, and a host of new startups. These applications provide online software for customer relationship management, corporate expense management, office productivity tools, email marketing (see http://www.rhythmmail.com for an example), personal services and more. New offerings continue to spring up in the marketplace giving traditional software companies a run for their money.

It has been estimated that corporations that have adopted the on-demand model have at least 3 different applications in use, and one in seven organizations have ten or more applications in use. Worldwide, organizations are expected to rapidly adopt this model, with 47% of corporations implementing an on-demand solution. By 2010, 60%-75% of organizations are predicted to adopt this model. Search the Internet for online software, on-demand software, software as a service (SaaS), and discover what can work for you. These applications will enable you to compete more effectively in the marketplace, and that’s critical for your success.