I believe a software publisher that still provides customers an on-premise software purchase is completely missing the advantage of SaaS, and is therefore not a real contender for the high stakes game.
The pace of change is becoming so rapid (I could have said rabid?) that any attempt to spread the innovation into on-premise or hybrid provision is going to slow a provider and cause them to be uncompetitive.
For Oracle, Microsoft and SAP, this is more true than ever.
Smaller, pure-SaaS companies are going to drive innovation so fast and so efficiently that it’s going to be impossible for the giants to keep up.
Providers of hybrid SaaS models will show their inherent weakness when they begin to take 6 months to a year between major dot releases. This is too slow for the post-SaaS market.
My, what exciting times we are living through!

“If your competitive advantage comes from Internet-based innovation, but you have very unique and demanding customers that require you to customize your product or services, then mixing SaaS with a managed services approach might be the right choice, because the premium you can charge will cover the hit to your cost structure”

… so we want to allow customers to switch back and forth between on-premise and fully managed, but we have been careful not to go full SaaS.

Cheers!