Rather than selling businesses a shrink-wrapped box of software to handle payroll, manage inventory and track sales leads, they offer their software over the Internet. No installation required.
The new model, software-as-a-service, is being hailed as a cheaper, easier way of selling and supporting software that opens up new markets for high-tech businesses.
"You're seeing a metamorphosis of the whole software industry toward this model," said Mitch Mumma, a partner with Intersouth Partners in Durham, N.C. "I am a firm believer that this is a fundamental change in the way software will be consumed for the foreseeable future."
