Eight reasons SaaS will surge in 2008
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Saved by 10 people (-2 private), first by anonymouse user on 2008-01-04
- Leslieh on 2009-09-16 - Tags SaaS , Cloud Computing
- Growthpanel on 2009-05-21 - Tags SaaS
- Falha404 on 2008-09-21 - Tags 2008 , phil wainerwright , saas , software as a service , zdnet , Monografia
- Midmarketplace on 2008-01-23 - Tags 2008
- Absolutesubzero on 2008-01-06 - Tags 2008 , phil wainerwright , saas , software as a service , zdnet
Public Sticky notes
It’s all about services. I’ll start my list by repeating the prediction I made at the beginning of last year: “SaaS is just part of a wider move towards Internet-based automated services.” The megatrend that powers SaaS is the same one driving Web 2.0, SOA and every other expression of today’s increasingly Web-connected world. Fundamentally, the infrastructure of the Web allows us to cut out much of the location-dependent friction that gets in the way of communicating, collaborating and trading. Software used to be delivered in boxes and had to be installed in the same building as the people that used it. The Web removes those constraints, enabling SaaS — and SaaS in turn becomes the foundation for innovative new ways of interacting and doing business.
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Virtualization makes it easy to go SaaS. One of the factors making it much easier for independent software vendors (ISVs) to adopt SaaS is the emergence of virtualization technology.
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Amazon’s EC2 cloud computing platform.
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Economic factors favor SaaS.
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Although a recession — if that’s what’s on its way — will pose challenges for SaaS vendors too, the majority of observers seem to think conventional ISVs will be worse off. InfoWorld, counting down the “top underreported software stories” of 2007, goes as far as holding SaaS largely responsible for the pricing pressures ISVs will face in the coming year. Certainly, the low-risk, pay-as-you-go model will give SaaS vendors a big competitive advantage if capex budgets are slashed, according to Goldman Sachs: “The ability to quickly and easily turn on new applications with a significantly lower initial cost of ownership makes SaaS an attractive offering … these benefits are likely to be key in a slower economic environment where purchasers of software may be increasingly skeptical of significant upfront investments which we anticipate to characterize 2008.”
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