SaaS market will 'collapse' in two years

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SaaS won't die...but most SaaS vendors will because they dont get the Web

The SaaS - enterprise software debate may as well be carried out on Fox News, everyone taking sides.

SaaS is here to stay, but it won't replace software. It's a different model that serves a different need from traditional enterprise software. Unfortunately, most SaaS vendors don't get their own business model and think of themselves as enterprise software delivered through a browser, instead of a Web-based business....and that is why they are failing.

Here is a SaaS-savvy test...what is the most successful SaaS product to date? If you said salesforce.com, you are wrong. It is Google AdWords. Think that is going away in two years?

Lawson and Ellison are right if you are thinking about replacing highly customized internal systems used by giant corporations to run the core competencies of their businesses, e.g., banks, global manufacturers, etc. But for other companies, wasting time and resources on managing a CRM or accounting system is just a hassle that gets in the way of doing what they do best.

Moreover, the Internet is here to stay, and more and more is going to be done online. A lot of new businesses are 100% online. The most successful SaaS plays realize that the action is on the outward-facing and Web-connected side of the business, not the inward-facing side which has been the birthright enterprise software. For example, check out the Web 2.0 helpdesk company Zendesk

by Joel York

at Chaotic Flow

Posted by: ChaoticFlow   Posted on: 09/06/08  (Edited: 09/06/2008 @ 02:23) You are currently: a Guest | Members login | Terms of Use

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