“Note that offering a SaaS version of your application that is less than the real thing will not work, particularly if you are the standard bearer in a big market segment. The customers will find it less than satisfactory and a new SaaS startup will find your mistake their lynch pin to guarantee their market success. SaaS customers, thanks to the web, know the alternatives and want the real thing. We can't count on marketing in little curtained cubicles to less-than-knowledgeable customers any more.”
“It's really complicated, but the simple answer is that there is no way. You get no edge when you rewrite your product for SaaS, and you run into enormous business model problems. Suddenly, you have three times the up-front costs and the time you have to wait before you make money on your product is doubled.
Repeat: there is no edge. The last thing you want to do is build the same product on the web, since you want to exploit web capabilities. So you have no edge there. Your customers are already trained to buy on-premise, so they see no point in buying from you. Your entire organization has got on-premise DNA, which in this context, is pretty much as incurable and deadly as HIV. If you've got the money and the cloud bug, start over.”