What is On Demand?
At the most simplistic level, On Demand is the delivery of software functionality over the Internet from a single application instance that is shared across all clients. On Demand solutions require only a Web browser for access, eliminating the need to install or maintain software or hardware. They also replace upfront licensing fees and lengthy implementation cycles of traditional installed applications with a "pay-as-you-go", subscription-based service relationship.
However, On Demand/SaaS is less about technology architecture than it is about a new business philosophy that incorporates the delivery of software, content, and services as flexible Web-based solutions. For supply managers, this means accessing application functionality (sourcing, contract management, procurement), research and intelligence (supply market data, category templates), and support services (spend data cleansing, sourcing event management) as integrated Web services.
Traditional enterprise application businesses are not built for such dynamic performance. Application development cycles at these firms are lengthy and complicated by the need to support antiquated architectures and legacy application versions. Their service groups are primed for large, complex, and costly implementation and integration projects—not rapid on-boarding and flexible lifecycle support services.
- The benefits of On Demand
- Making sense of SaaS: A Comparison Tool
- Is it really SaaS? Distinguishing true On Demand solutions from the rest
