Software or Service: The SaaS Dilemma

The concept of on-demand, cloud-based software, also called Software-as-a-Service (SaaS), has emerged a powerful movement in the software community.  SaaS applications are generally accessed by users via the interenet for a monthly subscription.  They are particularly conducive to businesses, large and small, looking to move away from custom solutions that require a large IT staff.  This movement, a next logical step in the evolution of software development, seems to be here to stay.
However, CIOs are becoming aware that the outsourcing of software development comes with a trade off.  Without in-house IT resources supporting your business applications, you rely primarily on the external software vendors who not are not generally at your beck and call.  Read more on this issue, Software or Service: The Saas Dilemma.  UpClear demonstrates that it is not sufficient to merely provide a robust application, and explains that their high level of support is one of the ways they are able to succeed.  They believe they serve as a good example as to how avoiding the dichotomy between software and service is good for business.
"To fully satisfy our consumer goods clients, we must provide a complete user experience: not just a software that is easy-to-use and
efficient, but also knowledgeable, dedicated support."  -- Thierry Soudee, UpClear Founder and CEO