ISVs are really embracing this model. And VARs who have either a vertical or horizontal expertise can take the applications for a demo with their customers, or play with the applications in a development environment; you can't do that with software.

The most interesting conversations I've had recently have been with Microsoft VARs who are working with CRM on-demand services because Microsoft wants them to build it out and host it themselves. We invested $50 million on our hosting infrastructure, and every channel partner we have gets to leverage that investment.