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Summary

The technology world is full of buzz words that make up a language all their own. With the turn of the 21st century, software as a service (“SaaS”) took its place in the dictionary of technology terms that are redefining the way many organizations plan for the future. With the web as the virtual foundation, SaaS providers can offer solutions that remove many of the obstacles created by traditional software. A number of companies have successfully deployed the SaaS model to hundreds of thousands of users, most notably SaaS blogger Phil Wainewright’s four horsemen of SaaS, and in the nonprofit world eTapestry blazed the trail.

However, these benefits often come with limitations on flexibility and data access. At the same time, traditional software vendors with deep functionality are undergoing the transition to the web delivered software business model. Forward thinking traditional software vendors such as Oracle and Blackbaud have invested in technologies to deploy their solutions over the web by providing hosting services, often called “OnDemand” services, while retaining the ability to offer full-featured, customizable, and data rich solutions.

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