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Business Objects Buys On-Demand Software Firm

NSite has 27,000 subscribers.

Business Objects (BOBJ) , moving to expand its on-demand offerings, has acquired privately held Nsite Software.

The transaction was completed before the deal was announced Thursday afternoon, but terms were not disclosed.

Nsite, which is based in Sunnyvale, Calif., claims 27,000 subscribers to its on-demand software service, while Business Objects has just 7,000 subscribers.

Unlike conventional software, which is generally sold by perpetual license and run on the buyer's computer network, on-demand software is leased on a subscription basis and runs on the servers of the provider.

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Although on-demand offerings are becoming popular in parts of the software business, Business Objects is the first major business intelligence software provider to move strongly into on-demand.

Nsite provides an infrastructure that allows customers to build, customize and deploy on-demand software applications.