The on-demand approach for delivering business applications has already made its mark on the software industry. By providing the solution as a service delivered over the Web, the on-demand approach promises to remove the headaches associated with purchasing, deploying, maintaining and upgrading traditional enterprise software.

Though initially these were just promises, the industry has matured over the past several years to the point where on-demand applications are delivering on their initial claims and are now widely used by companies of all sizes and in all industries. In fact, Gartner predicts that 25 percent of new business software will be delivered on demand by 2011, representing a $19.3 billion market (Figure 1).1

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