Their are a lot of factors to consider for a vendor when creating a hosted model, most namely:-
- Can the software be hosted easily with its current code?
- Would we do this directly or through partners?
- Is there a call for this?
- How will my profit margins and sale projections change?
Their is also the "greyer" factors to consider when looking at this and to whether the channel situated below the software company can actually handle selling a hosted offering and whether introducing it would require new suppliers into that channel or whether current partners can adapt and take on this as an extra route to market.
In my opinion, the predicted surge of cloud computing will depend on whether these factors have been considered in detail prior to this year. There is a long road to be driven before launching a SaaS / Cloud / Hosted solution and the strategy will have to be taken on long before a delivery can be realised.