According to ITPro, interest in on-demand software is high but takeup is not meeting expectations. Stephen Pritchard looks at the delay SAP is facing in launching its Business ByDesign offering and the poor initial sales the company realized for the product.
Pritchard also quotes a Forrester analyst as pointing out that numerous vendors are actually doing well, but he also looks at the possibility that large software vendors may be pulling away from SaaS because of fears of cannibalization of their existing product revenues.
None of that is anything we haven't heard before, really, but if uptake is actually slower than anticipated, the market doesn't seem to notice that. A post on Seeking Alpha points out that the companies in the on-demand index (ODI) seem to be making a profit and holding up well in the economic slowdown.
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