Many organizations are re-evaluating their approach to delivering enterprise applications, and are looking for ways to control IT costs. There is growing evidence of reluctance to fund large-scale implementation projects, and of tighter budgets forcing more careful cost-benefit analysis to justify IT investments. These efforts to control IT costs lead to consideration of alternative models for delivery of enterprise applications, such as the Software-as-a-service model or ASP (Application Service Providing).
This paper discusses the business drivers for application servicing and gives a detailed description of the Software-as-a-service model in comparison to traditional one. It brings the arguments that the Software-as-service model constitutes a viable alternative to software licensing for many application types today, and will become the dominant method for delivery of enterprise applications in not too distant future.
Vorisek, Jiri, "Business Drivers for Application Servicing and a Software-as-a-Service Model" (2004). ICEB 2004 Proceedings. 105.