"You know, I do like your product's functionality and price, it is both on-demand (subscription-based) and on-premise (perpetual license), and it preserves my system modifications, but, darn it, I just cannot buy it since you are not truly multi-tenant in a public cloud."
"Everyone wants to buy it, but the issue is how we can make money. The cost of operating the system is so high that we can't meet the profitability targets that our chief financial officer assigned to us."
“All of these problems with SaaS 1.0 multi-tenancy at the application level are eliminated with our approach to cloud computing and the Compiere architecture as well as our focus on building out vertical by vertical depth as a strategy. NetSuite will be at a serious disadvantage to Compiere in distribution and manufacturing when we scale up our sales efforts. Also, our CRM cloud services already offer answers to these problems.
So the answer is that the strategy we came up with 18 months ago for cloud computing is going to win in application areas where you need a moderately to highly complex solution. SaaS 1.0 (salesforce.com, NetSuite, and Concur) will work fine for simple and generic application areas. The above confirms our strategy coming unprompted from a real customer that experienced SaaS 1.0 and found it lacking and is now moving to our approach without us even selling them on it.”