The number of on-demand providers is increasing, as is the level of M&A activity in the HR software space.

[On-demand] is the type of disruptive innovation that has re-energized the single-digit growth software industry and provided a new method for obtaining the type of software that departments of large organizations, as well as small and medium-sized businesses, previously may not have been able to purchase due to cost or lack of I.T. resources.

There is no doubt that software as a service has become a driving force within the software industry. Indications are that customer adoption will continue over the next five years and spending will remain on the rise. The software industry must adopt a new frame of reference for value creation. Software as a service delivery is at the forefront of this trend, and adoption will grow as more customers experience software as a service and the offerings mature, becoming more readily accepted and available in the market.

Ultimately, customers want their business problems solved and the on-demand model provides another option to help accomplish that important and necessary feat.

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