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]]> By: Business Two Zero » Blog Archive » Software as a Service Myths and Legends http://www.accmanpro.com/2006/04/17/where-to-for-saas-acceptance/comment-page-1/#comment-958 Business Two Zero » Blog Archive » Software as a Service Myths and Legends Tue, 18 Apr 2006 08:57:23 +0000 http://www.accmanpro.com/?p=704#comment-958 [...] Zoli’s recent post on Enterprise SaaS Startups from an Investor’s Point of View, which refers to Don Dodge’s analysis of the economics of the topic, confirmed what I had expected - that although the traditional licence model will be around for a long time, current technology VC funding is focusing on SaaS start ups rather than traditional software.  The smart investors who have to look years ahead realise this delivery model is the way of the future, but how long before the general market catches up? Dennis writes about acceptance of SaaS, highlights the growth statistics and suggests that, although some see resistance, maybe we are at a tipping point. The likes of  Salesforce.com for CRM and NetSuite’s enterprise resource planning applications are beginning to get wider notice, but there are plenty of myths about the topic to be dispelled.  Jeffrey Kaplan has written a good piece in Business Week Online exploding his list of 8: Myth #1: SaaS is still relatively new and untested.Myth #2: SaaS is just another version of the failed application service provider, or ASP, and hosting models of the past, and will suffer the same fate as its predecessors.Myth #3: SaaS only relieves companies of the up-front costs of traditional software licenses.Myth #4: SaaS is only for small- and midsize businesses and will not be accepted by large-scale organizations.Myth #5: SaaS only applies to applications such as customer relationship management and salesforce automation.Myth #6: SaaS will only have a minor impact on the software industry and will fade over time.Myth #7: It will be easy for the established software vendors to offer SaaS and dominate this market.Myth #8: SaaS is only for corporate users.You should go and read his arguments on each one in turn.   There are companies like DPA Financial People, who have chosen one SaaS based back-office application, and now realise the infrastructure investment, hassles and unexpected costs that accompany deploying and maintaining a variety of traditional software applications can be handled a different way.  They’ve now taken the strategic decision to move all of their applications to SaaS alternatives.   This specific example points the way.  Some years back you might not have predicted that open source software would become so accepted for operating systems, middleware and databases by major and mid-sized enterprises.  These products were often first installed for testing, or small applications, but then deployment grew as the trust built up.  Surely it can be the same for the SaaS based products.  The more organisations choose and use the SaaS approach for trojan horse applications like wikis, blogs or specific point solutions, the more the acceptance will grow and SaaS will become trusted and mainstream.   The other factor to drive acceptance in the enterprise software field will be when more of the SaaS vendors focus on innovation and functionality that uses the web service approach to add value in terms of business process rather than just “me to” applications and a cost argument.  Technorati Tags : SaaS, business+model, VC, CRM, ERP, Salesforce.com, NetSuite  Powered By Qumana   [link] [...] [...] Zoli’s recent post on Enterprise SaaS Startups from an Investor’s Point of View, which refers to Don Dodge’s analysis of the economics of the topic, confirmed what I had expected – that although the traditional licence model will be around for a long time, current technology VC funding is focusing on SaaS start ups rather than traditional software.  The smart investors who have to look years ahead realise this delivery model is the way of the future, but how long before the general market catches up? Dennis writes about acceptance of SaaS, highlights the growth statistics and suggests that, although some see resistance, maybe we are at a tipping point. The likes of  Salesforce.com for CRM and NetSuite’s enterprise resource planning applications are beginning to get wider notice, but there are plenty of myths about the topic to be dispelled.  Jeffrey Kaplan has written a good piece in Business Week Online exploding his list of 8: Myth #1: SaaS is still relatively new and untested.Myth #2: SaaS is just another version of the failed application service provider, or ASP, and hosting models of the past, and will suffer the same fate as its predecessors.Myth #3: SaaS only relieves companies of the up-front costs of traditional software licenses.Myth #4: SaaS is only for small- and midsize businesses and will not be accepted by large-scale organizations.Myth #5: SaaS only applies to applications such as customer relationship management and salesforce automation.Myth #6: SaaS will only have a minor impact on the software industry and will fade over time.Myth #7: It will be easy for the established software vendors to offer SaaS and dominate this market.Myth #8: SaaS is only for corporate users.You should go and read his arguments on each one in turn.   There are companies like DPA Financial People, who have chosen one SaaS based back-office application, and now realise the infrastructure investment, hassles and unexpected costs that accompany deploying and maintaining a variety of traditional software applications can be handled a different way.  They’ve now taken the strategic decision to move all of their applications to SaaS alternatives.   This specific example points the way.  Some years back you might not have predicted that open source software would become so accepted for operating systems, middleware and databases by major and mid-sized enterprises.  These products were often first installed for testing, or small applications, but then deployment grew as the trust built up.  Surely it can be the same for the SaaS based products.  The more organisations choose and use the SaaS approach for trojan horse applications like wikis, blogs or specific point solutions, the more the acceptance will grow and SaaS will become trusted and mainstream.   The other factor to drive acceptance in the enterprise software field will be when more of the SaaS vendors focus on innovation and functionality that uses the web service approach to add value in terms of business process rather than just “me to” applications and a cost argument.  Technorati Tags : SaaS, business+model, VC, CRM, ERP, Salesforce.com, NetSuite  Powered By Qumana   [link] [...]

]]> By: Rami Hamodah http://www.accmanpro.com/2006/04/17/where-to-for-saas-acceptance/comment-page-1/#comment-957 Rami Hamodah Mon, 17 Apr 2006 18:29:50 +0000 http://www.accmanpro.com/?p=704#comment-957 I could not agree more! The penny is dropping now actually. Customers need simplicity and ease of use; and of course an application that works. I also believe methodologies such as AJAX will help SaaS rivals to achieve higher growth rates by increasing user adoption. I could not agree more! The penny is dropping now actually. Customers need simplicity and ease of use; and of course an application that works.

I also believe methodologies such as AJAX will help SaaS rivals to achieve higher growth rates by increasing user adoption.

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