Business assumes that the price of computer hardware continually falls, but what about the price of software? The rising costs of maintaining software had driven consideration of alternative ways.
I think for the first time there has been an economic shift in the software business. I think that has clearly been a transformative effect in the hardware business, the example I always use is that, well, Intel once upon a time was a little baby hardware company, no one cared much about. Today, right now, since every market process — every processor in every server is an Intel processor, how did that happen, right? Well, that revolution was a revolution of economics, simply, right? They were able to take cost and take it down, down, down; function up, up, up and by virtue of staying on that relentless path in essence re-evolve the entire industry.
This movement to quote software as a service or software On Demand is no different, it’s fundamentally an economic shift, right. We are changing the fundamental economics of the software business, which is why the old traditional software world will end, has ended, and a new one will emerge.