SaaS market will 'collapse' in two years

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RE: SaaS market will 'collapse' in two years

SaaS is a game for large numbers of small players, for modest products that microtarget niche needs. Salesforce, a gigantic enterprise SaaS product, is an exception to the more general pattern of small products made by small groups of people, often for use by small businesses.

Saying the "SaaS market" will collapse because gigantic corporations can't compete misunderstands how SaaS works in the wild. In fact, the author's misunderstanding of the concept is precisely why: he can only envision SaaS products on the enterprise level.

The "big player" SaaS market may indeed collapse, but it will be only due to their own inability to shift thousands of employees over to new sales and user experience business models. They will be killed by SaaS products by smaller players. To Lawson, this may constitute a "collapse" of SaaS, but if millions of people are actually using SaaS products made by small companies, it's a hard argument to make stick.

Posted by: Christopher Fahey   Posted on: 11/07/08 You are currently: a Guest | Members login | Terms of Use

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