I really like this model. It basically means that a
system/product is developed centrally and a user can buy a right to use it
rather than having to buy it.
There are some obvious benefits to this.
Cheaper for Users:
Since they do not have to buy the product, it proves cheaper.
Easier to Maintain:
Since the product is hosted at one place, enhancement and maintenance is easier
to do and the cycle times are lower.
Easier Customisation:
Most products developed are module wise, which makes it easier for the seller
to customize the product for a user based on it’s requirements.
If
you look at the overall picture, it makes sense to not waste time and resources
in duplication.Creating, hosting and maintaining centrally creates economic
value.