With a few exceptions most software vendors have either chosen to provide their software exclusively as software as a service or as an installed solution. I have always found this rather odd.
In fact this was backed up recently when in discussion with an analyst from a research company. He wanted to understand our strategy of offering iPlanWare as a service and as an installed solution. I told him something along the lines of “Its quite simple really, we are in business to make money”. As a vendor why close off routes to sales by limiting your prospective customers options? Not all prospective customers can go with SaaS software – often this is a corporate policy. This may change over time, but I would estimate that right now at least 20-30% of prospects we engage with have to purchase installed software.
The argument often positioned for vendors going either the SaaS route OR the installed software route is to keep their software and product simple. But I think this is a case of getting your software design and architecture right.
With iPlanWare our installed customers use exactly the same software as our SaaS customers. It causes us no extra work or development effort to offer both as our software was designed with that intention. So we broaden our market at no additional cost to ourselves. As they say – it’s a no brainer.