The interest in On-Demand supply chain software continues to grow, as many see benefits for their companies in this approach versus the “traditional” deployment and contractual module.

But what really are the options, and what are the real business drivers behind the decision on which way to go?

The figure below, taken from our just released Supply Chain Digest Letter on On-Demand Software, illustrates the key considerations. Is the main concern avoiding a large upfront investment in a software license? Or is it the lack of IT resources to deploy and maintain a new supply chain software solution? (Too download an e-version of that SCDigest as well as other resources, go to: On-Demand Supply Chain Software Resource Center.

A classic On-Demand solution means the software is remotely deployed, and paid for in a subscription-transaction model, but there are options – even traditional vendors are often willing to deploy their software locally, but charge on a subscription basis, as our many mostly On-Demand suppliers. It is certainly possible to buy a software license upfront, but have the application hosted.

Another dimension is who will run or manage the software, as in some application sectors, especially transportation, third party logistics providers may be able to both provide a TMA on-demand and use it to provide transportation management service.

We believe the growth in on-demand software will inevitably lead to a blurring of the line between what is software and what is service.

Agree or disagree? What is your perspective? Let us know your thoughts at the Feedback button below