The Open Cloud – It Even Works for Non-Open Source Providers

Just saw that Sage Software is finally figuring out a way to better serve its customers who have been demanding SaaS-like solutions. By leveraging elements of the open cloud – Sage is able to deliver more diverse web-based applications to end users, while also not alienating the partner network that made the company what it is today.

The real interesting thing here is how Sage is really echoing the same concepts that SugarCRM offers in the open cloud. And the message here is that the days of lock-in from the old SaaS providers are numbered. Multi-tenant SaaS is not cloud computing. It is a hosting model that has borrowed cloud terminology for marketing purposes.

Sage is embracing the cloud model because it can – its offerings have never been tethered to a monolithic multi-tenant fixed datacenter. Sage’s products as a model were meant to be distributed through a channel – and now the channel can offer cloud versions through third parties like Amazon. (Something Sugar is offering as well and many partners are leveraging as their cloud provider of choice.)

Sage’s cloud initiative does have challenges, to be sure. I don’t believe a lot of their offerings are still fully “web ready” in terms of high volume cloud-based consumption. But Sage “gets it” in terms of making varied options available for end-users and partners.