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Editorial from the April 2006 issue of Managing Automation

The Future of On-Demand

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Abstract:IT managers and CIOs fearful of ceding budget and clout to on-demand services, take heed: The payback of getting it right will outweigh the loss.

There are many perennial questions in the software world, and questioning how far a user organization can go with software-as-a-service, on-demand, and outsourcing surely ranks in the top 10. This question resurfaced recently when SAP entered the fray with an on-demand version of its CRM product. Considering the vast amount of functionality lurking in SAP's -- or Oracle's -- software portfolio, every customer, partner, and competitor wants to know how far these companies will go in mining the on-demand opportunity.

Of course, any software vendor can put forth an on-demand offering. Indeed, scuttlebutt from Silicon Valley is that venture capitalists are only funding companies that include an on-demand offering in their software portfolio.

Part of the reason that the limits of on-demand are such a persistent question is that the requirements to manage costs and focus on core competencies are themselves perennial objectives for every business manager and CIO. Meanwhile, business managers and CIOs also worry about their own turf and budget and political clout -- and therefore question whether on-demand and its related activities might be career-stalling moves.

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