I just got off the phone with a customer that will be presenting at SugarCon 2009. We were talking about Sugar On-Demand, the pros and cons associated with SaaS/cloud computing, and the economy when this director of IT made a very interesting point: cutting costs by skipping product upgrades and turning to cloud computing.
Given the economic downturn, I’ve been reading a lot lately about companies turning to open source to cut IT budgets, but as our astute customer pointed out, why shouldn’t businesses look to SaaS and cloud computing to cut costs rather then upgrading existing software packages, or implement new ones?
With more and more functionality being inherently imbedded within Web 2.0 technologies, the ability to virtualize the end user desktop has never been greater.
Martin provided a perfect example of this the other day by showcasing how a customer could leverage the Cloud Connectors embedded in Sugar 5.2 to deploy application training content virtually, and at nearly zero cost.
Rather then making costly upgrades, companies could consider implementing key services and/or functionality via cloud computing platforms, custom developing functionality or integrations. In short, cherry picking the most needed functionality rather than overhauling the entire engine.