Archive for the ‘Prediction’ Category

The Surge of On-Demand (SaaS) Incentive Applications

January 8, 2008

In 2000, I started to hear predictions that Software as a Service (SaaS) would eventually replace conventional ‘enterprise’ applications. The idea was slow to catch on, but we finally see more and more on-demand applications emerging.

Today, the Silicon Valley Business Journal had a news release regarding Callidus’ Financial performance.

Without discussing the actual company performance and the resulting effect on its stocks, what is interesting to note is that Callidus did notice more on-demand.. demand, and less demand for its Enterprise applications.

“We are announcing preliminary financial results today which reflect a record level of on-demand sales activity but a disappointing level of perpetual license revenues,” said CEO Leslie Stretch. “While there was a good level of overall activity in the business, it was skewed towards on-demand as perpetual license sales were lower than expected.”

I haven’t made any predictions for 2008, but if I had to, I would have to finally agree with everyone saying that the age of SaaS has finally arrived.