On-Demand / SaaS

An On-Demand Pioneer


Beginning in 2000, the concepts of "utility computing" and "application service providers" began to gain momentum in the information technology industry, with the idea that these new software delivery models would supplant "client-server architectures" as the primary deployment model for enterprise software. The basic idea behind these radical new concepts was that enterprises were no longer required to purchase and deploy complex hardware and software infrastructures, but instead could use the Internet to access systems that were deployed and maintained off-premises.

Since that time, those concepts have morphed, been renamed, and have experienced unprecedented growth, due to the strong advantages the new software model offers. Plexus was a pioneer of this model, converting the company's software architecture from client-server in 2001.

It's about the Business Model!


Today, the terms "Software as a Service" (SaaS) and "On-Demand" describe a technology model where software functionality is delivered 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. The vendor-client relationship is also fundamentally changed from a one-time transaction (often with hidden costs) to a long-term partnership based on predictable monthly fees - a subscription-based service relationship.

However, On Demand / SaaS is less about technology than it is about a new business model that incorporates the delivery of software, content, and services as flexible Web-based solutions. For manufacturers, this means accessing application functionality as an integrated Web service, with the ability to manage and monitor their entire business operations - including the plant floor - from anywhere, at any time. The advantages to this are plentiful.

Rapid Development


Traditional enterprise software companies are not built for this type of long-term client relationship. Application development cycles at these firms are lengthy, and complicated by the need to support multiple hardware platforms/architectures and legacy application versions, and customer service is focused on trouble-shooting problems that arise, rather than adding value to the application. Their service groups are designed for large, complex, and costly implementation and integration projects -- not rapid on-boarding and flexible feature development.

Even worse, companies often find themselves two or more versions behind the current software, because customizations they built around their original deployment may not be supported after an upgrade!