SaaS/On Premise Coexistence

Jeff Nolan gets beyond the gnostic, either/or thinking that pervades the valley when he reiterates that on premise ain’t going away even in the Enterprise 2.0 world.

Being web-based behind a firewall or on the public internet are not that dissimilar. There are enterprise 2.0 apps that depend on a network effect or a market that is strongly aligned to on-demand hosted, but the fact remains that many companies and many markets still want on-premise capabilities. This is one point that Oracle and SAP both nailed, rather than chasing the multi-tenant hosted trend they listened to their customers, who by and large simply weren’t asking for it.

I’m trying to work through the heuristic firms will use to decide what goes SaaS, what stays SaaS, what goes On Premise, etc.

  • Will SaaS really have a big role in value chain segments that are critical to a company’s success?
  • Will enabling processes like talent management continue to see SaaS boom, or will they get sucked back OP?
  • Will SOA be how we get the best of both worlds, where OP apps can call services that provide fresh, complex content (e.g., GRC apps where the risk data stays OP, but regulation-driven content like checklists, codes, etc. can get pulled in on demand)?
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