I have provided a detailed analysis of my thinking about CODA’s entry into the growing saas market over at ZDNet. Here I speak to certain UK specific issues. Of necessity, these represent a summary of my thinking. There is a lot more detail behind each point:
- Several commenters believe it will be 3-5 years before saas becomes mainstream. CODAs entry into the market legitimizes the concept in a way that only Microsoft or Sage could manage. If they are successful, then my admittedly aggressive time frame of 18-24 months will prove correct.
- CODA is one of the best recognized IT brands in the UK. Other vendors will watch but ultimately be drawn into the market. They will all be playing catchup because CODAs partnering with Salesforce.com is a genuine coup.
- Sage, Exchequer and Access-Accounts will come under threat. Cedar could come under threat.
- Sage’s DNA should mean it is able to easily focus on this market but evidence to date suggests otherwise.
- IRIS’s recent announcement of a cut-down version of Exchequer is exactly the wrong direction.
- Access Accounts is vulnerable because CODAs business model will allow it to clean up the channel
- CedarOpenAccounts has had a very good run in the last couple of years and is well positioned in its chosen markets. However, CODA could easily nibble at its OpenAccounts customer base.
- Twinfield will be a beneficiary as it enjoys the halo effect conferred by CODA. Twinfield has been making steady progress. Supported and enhanced with Microsoft technologies, it can play the Microsoft card. Regardless of Microsoft’s own lack of a full saas offering, its brand carries market power.
- The accounting profession is an important route to market for UK players. Saas offerings provide professionals with considerable opportunities to change their business approach for this market segment. Provided CODA positions itself appropriately, it could open up an entirely fresh market that to date has been closed to its products.
Regardless of what happens, these are interesting times. UK take-up of saas/on-demand has been spotty in a number of markets. CODAs entry is bound to see commenters sitting up and taking greater notice. CODAs approach to development in driving innovation will be key. If it does the job correctly, it will send shock waves through the industry.
Technorati Tags: access accounts, Cedar OpenAccounts, CODA, innovation, Microsoft, Microsoft Dynamics, Twinfield
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