TAKEAWAY: A Business Week article this week examined whether SaaS and on-demand computing may have revolutionized software distribution "a bit too much." Despite the presence of numerous upstarts in SaaS, vendors are learning that the software doesn't always sell itself and does appear to be decreasing revenue for vendors. It takes a lot of money to market the software and to continually tweak and upgrade it, and profit can be a distant pipe dream. There is certainly opportunity in on-demand computing, and it certainly may be the way of the future, but for the immediate future, software companies hoping to make money face an uphill struggle.<
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Source: Business Week
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