Many PPM vendors that originally sold on-premise solutions have made a transition into the on-demand marketplace. The primary reason for this change is that they have realized the potential value of this untapped market space, as software as a service (SaaS) offers a number of advantages to the client in the SMB market:
No software needs to be installed.
No infrastructure is required to support the application.
The SaaS vendor manages all network issues and all software version updates.
SaaS applications result in a lower total cost of ownership (TCO). On-premise software can cost a substantial amount in implementation fees and user support.
SaaS applications allow scalability. Many of the features designed for an on-premise PPM system may be too robust for the small business user. But users can derive the benefits of a PPM system with an on-demand application, even if at first they are using only the parts of the software they require. Features and functionality can be added later, as users become more familiar with the application.
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