A new model of software delivery (interview of Andrew Lund)

In general, how would you sum up Microsoft's approach to the practical implementation of "Software as a Service"?
ANDREW LUND: A new model of software delivery and consumption has captured the market, a model known as Software as a Service (SaaS). IDC anticipates that the SaaS model will expand the addressable market from the current $8 billion to more than $20 billion by 2012. Indeed, according to Edge Strategies Inc., almost half of all companies with fewer than 100 employees do not want to manage their own IT infrastructure and would prefer to outsource. However, Microsoft also believes that the SaaS model as commonly defined is only one part of a broader opportunity that is unfolding for service providers. SaaS focuses on the delivery of software applications as a service and consumed through a browser interface. The goal of the Microsoft software-plus-services approach is to enable businesses to be more successful by providing them with rich applications through the deployment options that works best for them. How software is consumed will ultimately be decided by businesses and consumers, based on their IT strategies and specific needs. However, one thing is certain: choice is always a good thing, and a software-plus-services approach from Microsoft enables you to take advantage of a “bringing it all together” experience. We have seen dramatic changes over the past ten years in the way that end users apply software products...