[harnhua]

Would that diminish the value of our service if it only runs on companies' internal servers and not enjoy benefits in parallelism that we can give them?

I guess if they are too worried about IP, offering the downloadable service is perhaps the best alternative.

[gte910h]

Another alternative is running in a VMWare virtual machine for them, or allowing them to upload it themselves to cloud providers.

[gte910h]

Has hacker news not heard of Virtual Machine Appliances?

http://www.vmware.com/appliances/

You can buy VM Images that do all sorts of things with no configuration whatsoever. Multiple VMWare images running on customer hardware is an alternative solution for this company if they're trying to sell to people like Cisco and AT&T etc.