I was interested in reading the controversy this week about Oracle offering their customers the ability to run their CRM On Demand product on their own servers (see Eric Krangle’s article in Silicon Valley Insider, and also Phil Wainewright’s blog). The comments have ranged across challenging Oracle’s claim that their product is really SaaS (if the product is installed on your own box, what’s the difference between this and conventional in-house software apart from the pricing model?), insinuating that one of Oracle’s motivations is so that that the press will never notice any downtime (if one customer’s server crashes for a day only one customer is affected, whereas if a large shared platform goes down for an hour everybody screams and the press pick it up), and picking up on Europe’s stricter data protection laws (legally, if you want to store the personal details of European citizens outside of the EU you need each and every one of them’s individual permission, not that many people seem to know or care about this).
As Cloud Computing becomes the must-have technology for this and the next decade we’ll see lots of more traditional vendors claiming that their offering is Software-as-a-Service, all with their own definition of what Cloud Computing is about: pure play vendors with browser based applications and no (or minimal) local software, shared tenancy and monthly pricing (Salesforce.com, NetSuite, Kashflow, Really Simple Systems); browser based software offered on in-house or single servers (Oracle); local software and the data in-house or hosted (Microsoft); traditional software running on in-house servers but accessed through the like of Remote Desktop Connection. Only when the fog around Cloud Computing clears and customers work out what they want and at and what price will the terminology and offerings stabilise.