Enterprises battered by the recession are not as interested as they once were in investing time and money in software development or software maintenance. Moreover, software licensing continues to be a headache in a virtualized environment. For both reasons, software subscription cloud computing models are expected to stick around, and business software companies are paying heed, according to Kevin Dobbs, managing partner of Montclair Advisors LLC in San Francisco.
Vendors like Oracle Corp. and SAP AG will get on board with this shift, delivering subscription models of their software that include cloud-like features, such as self-service and usage billing, according to industry analysts. IBM, which already has a SaaS, last month announced new partnerships and greater adoption of its LotusLive public cloud services. Those provide integrated email, social networking and collaboration services through the IBM cloud.
“This shift [to SaaS] is massive, and is going to take at least 10 years,” Dobbs said. “We are probably only in the second year, post recession.