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Daugherty explains how certain trends are combining together to make software as a service a real possibility. The key development is that businesses and governments have completely accepted that IT is intrinsic to what they do, and that therefore applications have to be delivered in a way that makes the best sense for the organization. In today’s service economy, software as a service makes business sense for many organizations as they strive to achieve high performance.
The second important factor is that technology itself has reached a point where it is able, both technically and conceptually, to deliver software by this new paradigm. All of this means that the focus shifts from the technology itself to the business it supports.
Daugherty also considers how the value proposition being offered by service providers is changing the closer we get to software as a service becoming a reality. He concludes by sketching the challenges that CIOs should be thinking about when it comes to software as a service, and where the market might be going.