IDC analyst Tim Dillon says enterprises should apply the “fitness for purpose” perspective when deploying cloud computing. “You will hear a lot of organisations touting it as a panacea to all the problems the organisation faces. This is not true,” he told those attending a recent Auckland briefing on cloud computing organised by AT & T.
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Not surprisingly, SaaS vendors have decided there's no time like the present to make a full court sales press. In a down economy with slashed IT budgets, when there's no tolerance for 18-month software implementations and the price tags of on-premise software from Oracle and maintenance fees for SAP applications are not falling, software-as-a-service and cloud computing offerings become more attractive options for businesses. Marc Benioff, the CEO of SaaS CRM vendor Salesforce.com, recently explained just why his flavor of the cloud computing model was best suited for today's troubled economic times. Forget big contracts with Microsoft, Oracle or SAP, and get beyond outdated hardware and software solutions, Benioff told CNBC in early October. Benioff said that Salesforce.com's "pay-as-you-go, elastic model" offers clients much more flexibility.