Q: Where are you at with on-demand?
A: Today we only offer Sugar On Demand for our professional and enterprise editions. From our perspective, we're about 70 percent onsite and 30 percent on-demand. But our on-demand business is growing dramatically.
What's interesting about our on-demand business is we worked the last four years the right way to do on-demand, which is multi-instance. In general there was a solid first generation of on-demand software, then the next generation was multi-tenant, but it has a lot of weaknesses to it. Now it's possible to have a more modern generation called multi-instance - one instance, single-tenant, multi-tenant, multi-instance. We're not the only ones to do this. It provides complete upgrades, a complete framework, but gives customer their own database and makes backups a million times easier.
Q: What are your on-demand plans going forward?
A: Expanding our data centers. Right now we've invested heavily in data centers in
Q: Having a platform for the on-demand development of applications seems to be all the rage in the
A: Sugar 5.0 is a platform. One of the core capabilities of Sugar 5.0 is this thing called Module Builder. What's really exciting and unique versus proprietary companies is anyone in Sugar can build a module - an event module, or to manage media contacts - on the side. So now in Sugar 5.0 [users] can create [applications] completely visually. You don't have to be a programmer. What's nice is it saves it as a package, and you can share it across the Web.
So it generates license code, and stamps it GPL 3, whereas a company like Salesforce.com will go and invest in a proprietary programming language or create a very locked-in environment. I am not sure the world needs another proprietary language. SugarCRM is absolutely open. We have government organizations that use Sugar to manage and handle healthcare records...though I am reluctant to use the platform word; it's abused by so many vendors.
If someone is spending $90 million every three months on marketing and they want to use the platform word every other sentence, that's fine. But that doesn't mean it's a real platform, or a good platform, or it's worth what they want to charge for it. That's why I've been waiting for reality to settle.