SaaS is ripe for disruption
Justin Jackson

I think proprietary SaaS cloud applications are costlier than on-prem model. I haven’t yet seen an ROI calculation that proves cloud is cheaper for an licensed enterprise app that has a visibility for 7–10 years with say two up-grade cycles.

I think more and more CIOs are turning to self hosted open source Apps. Hosting could be in their own DC or with cloud providers (doesn’t matter). Own DC turns out cheaper again if the horizon is longer. Open Source applications are not only better , now a days they are cutting edge. Case in point Docker v/s VMware.

Traditionally open source projects are supported by big tech. With increased maturity and reach of open source movement , I think there is going to be a major shift in more and more non tech businesses supporting open projects. This will bring in number of new business models for implementation , support and training services. Days are not far away when Microsoft open sources Office and SAP opens up its ERP :-). Sooner is better for them cuz better products are coming faster than we can imagine.