

 
It’s interesting to look back and see how reality sometimes – or is that, usually? – differs from what we expected. When we formed DSG, the driver for on-demand solutions was the lower initial costs and total cost of ownership relative to on-premise solutions but, five years later, it’s apparent that the conversation has shifted from lower costs to a more strategic set of drivers.
Our experience with over a hundred and fifty successful on-demand projects, tells us that on-demand’s greatest financial benefit is not actually its lower cost: on-demand’s major financial benefit is that on-demand lets you reap the business value of your solutions investment more quickly. In the words of the marketing fraternity, it offers better time-to-value. Your business solutions are up-and-running more quickly and therefore your targeted business benefits are achieved more quickly. We are consistently seeing complete on-demand ERP systems going live in 10-12 weeks, not the typical 10-12 months of an on-premise solution.
The second major benefit is that IT becomes a service to your organization not an intrinsic part of it. Just as you would prefer not to build a power station to be able to use electricity, why should you have to build an IT organization with the provisioning of hardware, loading and configuring of operating systems, databases, etc. just to be able to run a business application. Should IT be a core competency? I think most would prefer not.
A third benefit that we and our customers see is real value out of packaged software purchases. I’m sure that you remember the old sales pitch about enhancements and new versions of the software? I’m equally sure that when many of you thought about the business disruption and risk of implementing a new software version, you decided to stay with the one that was already installed and working! With on-demand, this issue goes away: the vendor bears the costs and risks of implementing new features; all you see is new functionality delivered without any aggravation or hassle to your desktop. You are always on the latest version with an ability to leverage all of the greatest and latest capabilities. Good bye scary 6 month upgrade activities.
Looking back over the evolution of this market, the positioning of on-demand has matured from its low cost roots, through a more sophisticated time-to-value message, to where we should now talk about the strategic value of on-demand solutions as they continually evolve to deliver higher and higher levels of business value.
Please enjoy the rest of the newsletter and pay special attention to the Customer Focus section where we outline several customers that have enjoyed the time to value of On Demand solutions.
Todd Fitzwater, Principal and Co-founder |


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Demand Solutions Group is a privately owned consulting
firm that sells and tailors on-demand ERP, CRM, and eBusiness
solutions to deliver maximum business value for clients.
The company provides a range of road-mapping, launch,
revitalization, and optimization services for leading
on-demand software packages. Demand Solutions Group serves
businesses that range from start-up companies to members
of the Fortune 100, and is based in Silicon Valley, California.
For more information, please visit www.demandsolutionsgroup.com.
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