The BIG fight (OnDemand Fight)

The OnDemand Fight is getting bigger and better. With the release of Hydrazine from Sun microsystems, the list of big players trying to get into the OnDemand space has become longer. What this proves is that OnDemand is here to stay and all the big players want a piece of the OnDemand Market.

But what is OnDemand, why is it that there are so many companies trying to get into OnDemand space and why is there so much competition?

OnDemand is a convenient new delivery model ( Software as a service) where the vendor will host the IT application maintain and enhance it. This is the most cost- effective and hassle- free way for a organization to go for an IT application.

Customers have begun to accept this model are migrating in big numbers to OnDemand applications.
This has encouraged all the big players to come out with innovative OnDemand applications. Gmail and Yahoo! have e-mail OnDemand. Google has many other OnDemand applications like blogs, calendar, chat, document management desktop etc...

Salesforce has started with serious applications like CRM, which was quickly followed by IBM, Oracle with their own set of applications. IBM came up with platform OnDemand. Oracle has both platform OnDemand and CRM OnDemand. SAP has their OnDemand ERP (SAP by design). Microsoft has recently launched Live Mesh(CRM application). Sun has revealed their plans for OnDemand application.

There are lot of other companies which are getting into Ondemand space with niche applications.
With so much competition and so many launches this space is getting to be a lot more interesting and fascinating. Waiting to see more launches. :)

OnDemand ERP

What is On Demand or SaaS?
On demand software is a business solution delivered as a service. The best example of an on demand service or Software as a service (SaaS) is the email service provided by Gmail, yahoo or msn. The application is hosted by a service provider and distributed using the internet and a web browser. The main concept of SaaS is a single instance, multi tenant architecture. Unlike the traditional on premise software model the application in the on demand model is shared by many users. Since the application is shared by many users the cost of ownership is very less compared to the On Premise model.
Benefits of OnDemand ERP compared to traditional On-Premise ERP?
Low Cost: On Demand software works on the pay per use business model. Users pay based on the number of users using the application on a monthly, quarterly or yearly basis. Usually there is a very minimal implementation cost.
No Maintenance: Since the software application is hosted and maintained by the service provider the end user need not worry about maintenance, updates, upgrades etc. Everything is done by the service provider.
Easy Entry and Exit: In an Ondemand ERP, the entry is easy since there is no upfront cost, time or resources required for the implementing the system. Usually the ERP can be implemented in very short span of time. The user’s pays for what they have used and the moment the end user feels there is no value in the system he can come out of it.
IT Resource Cost: One of the major costs for implementing and maintaining an erp system is the IT personnel cost. In an On Demand ERP there is no need of IT resources.

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