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3. Faster deployment. A faster deployment of software is always a strong positive factor into how well it will be adopted and used by your organization. Hosted solutions typically offer faster deployments, with fewer internal pressures and distractions from day-to-day operations and activities. In short, focus of deployment is on end-user training and acceptance, since you won't have to install or maintain servers, networking equipment, security products, or other hardware or software.
2. Easier innovation. Another key advantage of hosted model is that it facilitates on-going process innovation as new functionality can be introduced incrementally over its lifecycle. The traditional model of purchased and locally implemented software binds companies into "big-bang" versioning where updates are introduced in batches - typically every 12 to 18 months. That model inhibits real-time improvements of software and processes as they become available. In a hosted environment, major new product releases and improvements can literally be made overnight.
1. Lower cost and smoother cash-flows. Hosted solutions like Invendia have a decided cost advantage over traditional packaged software offerings like SAP and Oracle: low hardware and software costs (you need only outfit your users with PCs, which they likely already have), no depreciation costs, no software or hardware maintenance costs, and lower implementation costs.
With hosted solutions, first year total cost of ownership can be five to ten times less expensive than enterprise software with majority of savings resulting from elimination of upfront integration and customization projects. Thus, payback period is considerably shortened.
And hosted solutions offer much smoother cash-flows, with no large up-front cash outlays that need be subsumed by your organization.
In conclusion, hosted model of enterprise software lowers risk, simplifies licensing, eases deployment, encourages innovation, and decreases costs, all of which result in faster return on investment, lower total cost of ownership, reduced risk, and flexibility that you need to successfully compete in today's fast-moving business climate.
Ken Town is VP of Research and Technology for Invendia, a leading provider of vendor managed inventory and web-based inventory solutions. He can be reached at kentown1@invendia.com or http://www.invendia.com.