The meteoric rise of Software as a Service, or on-demand hosted software, has prompted a paradigm shift that poses challenges not just to a firm's traditional IT infrastructure but also to vendors who must now counter the trend with low-cost, high-performance solutions to retain their user bases.
"In the next few years most accounting software will migrate into this space," predicted Michael Bodnar of Quantum Information Technologies. "Customers are literally one click away from leaving [their current software package], so it's up to the vendors to improve their functions and performance."
Bodnar, who led a session at the AICPA Information Technology Conference here on the market dynamics of SaaS, pointed to the rapid proliferation of SaaS CRM and business software providers such as Salesforce.com, which now has a base of 2 million users, as well as the offerings of Google Apps.
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