“A lot has been said about what Software as a Service is and is not - and we’ve been part of the noise. I really feel however there is something bigger going on. There is a tsunami coming and SaaS is only one of many waves.
People have said SaaS is:
People have said SaaS is:
- A delivery method enabled by the spread of low cost broadband
- A technical architecture (multitenancy) that provides higher efficiency and lower costs (in the best implementations anyway)
- A business model led by direct responsibility for service to end-users
- An alternative to the traditional capital investment model of software licensing
- A low cost way to take advantage of applications and services for SMBs
- Gaining acceptance in enterprise business
- A potentially disruptive business model that could end the dominance of traditional software vendors
- An opportunity that allows new players to “level the field” against intrenched industry leaders
- A flash in the pan that will eventually morph into some other even cooler marketing-led hype.
I would say all of these things are true - and more - or less. In another way however, these observations miss the point. An illustration might help:
Business as Usual
In the “traditional software vendor” business model, the buyer is the ultimate customer. If the buyer is a company - no matter how large or small - the buyer is the filter between the people who use the application and the vendor. If you add in a sales or service channel, a secondary source, the relationship with end-users becomes even more tenuous for software vendors.
Business as UsualIn the “traditional software vendor” business model, the buyer is the ultimate customer. If the buyer is a company - no matter how large or small - the buyer is the filter between the people who use the application and the vendor. If you add in a sales or service channel, a secondary source, the relationship with end-users becomes even more tenuous for software vendors.
Think about that.
More Info... Saas Business Model
