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Renting out access to software the way of the future?

Submitted by Karthik on 26 May, 2004 - 12:03

Siebel, a leader in the market for CRM (customer relationship management) software, has decided to rent out managed servers running it's software, along with selling packaged software. This move has been forced upon them due to the success of competitors such as Salesforce, that host the software and sell access to it.

The Salesforce model has advantages for companies that don't relish the complication, time commitment and expense of installing their own CRM software. And though Siebel remains committed to the idea of selling software packages, it's embracing the idea of hosting the software for customers to rent, said David Schmaier, a Siebel executive vice president speaking at the CeBit America show here.

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