As part of its AppExchange service, Salesforce.com is now offering users the ability to run test, development, or training copies of their applications, including any custom or third-party applications that the user is running on top of Salesforce.com. CNET has a summary.
Of course, in-house application development organizations have been maintaining testing environments since the early days of corporate computing in the 1950s. But for software on-demand, this is an important step in increasing adoption of hosted applications. Software on-demand is often hamstrung by difficulty in creating custom modifications or generally doing anything outside of running the production environment.
On-demand providers such as Oracle that install a separate instance of the application for each customer can offer multiple environments without much difficulty. But, to my knowledge, Salesforce.com is the first provider operating under a multi-tenant architecture--once system instance supporting multiple customers--to offer such a capability.
If you can read past the marketing fluff, there's more info on the Salesforce.com website.
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