Event Report: Dreamforce 2008 - Love is In the Clouds

(Photo: Main show floor for Dreamforce 2008 at Moscone Center, San Francisco, CA. Copyright © 2008 R Wang. All rights reserved.)

Over 9,000 attendees made it to the annual San Francisco pilgrimage to hear the high priest of SaaS kickoff the event. This year’s theme focused on the future of Cloud Computing, a focus on success, and how much Salesforce loves its customers. Key product, technology, and partnership announcements from the November 3 to 5 event include:

• Force.com expands usage to new product and services. Force.com sites allows customers to publish Force.com data and apps to any site, basically supporting customer built web apps. SFDC will take care of domain, URL, RSS management, etc when customers run their Web apps on Force.com. Other expansions include Force.com for Amazon and Force.com for Facebook. On the Amazon front, SFDC also will support applications being built using Amazon web services, in effect creating a mega cloud. Facebook support allows developers to tap into the Facebook Platform and Facebook Connect.

  POV: Movement to expand the platform into new B2C facing markets give SFDC credibility in new social media markets as well as taking the Cloud wars to the consumer. Consider this a continuation in the battle for domiance of IDE’s in the cloud.

• CODA showcases its financial package on APEX for the North American market. While Coda2Go was launched at Dreamforce Europe in London last May, attendees at Dreamforce 2008 in SanFrancisco had a chance to see first hand how the 30 year old vendor had completed its rewrite. With enterprise financials built on this new platform, Salesforce.com customers now have more choice in financial solutions within the ecosystem.POV: Like many mid-market vendors, CODA had the opportunity to bet on the next platform and chose a SaaS approach over an on-premise middleware platform. Most mid-market vendors bet on a Microsoft VS.NET “Rainbow” Stack, IBM Websphere, or Progress Software. These middleware platforms allow companies to spend 10 to 15% of budget on tools and technology instead of a staggering 33% that many would spend if they built their own middleware. CODA’s decision is market leading for the industry and is reflective of its groundbreaking historical bets on HP3000 in the 70’s, VAX (DEC) in the 80’s, and AS/400’s (IBM) in the 90’s.
• Glovia, a Fujitsu Company, builds order management on Force.com. Customers seeking lead to billing solutions in order management can now turn to the Glovia solution for order management, inventory, fulfillment, and billing. Glovia takes the order from Salesforce.com and brings it into the order maangement system giving it visiblity from prospect to invoice. Enterprises can also check status via the web or on a mobile device via Salesforce mobile.POV: Salesforce.com’s ecosystem strategy allows other vendors to build key back office end to end processes. As more companies add to the ecosystem, SalesForce will continue to gain market relevance against enterprise vendors struggling to move to a true multi-tenant onDemand delivery model.

The bottom line - SaaS platforms continue to morph into cloud computing

Recent decisions by CODA, Glovia, and a host of software vendors show that the transition from on-premise middleware platforms to cloud-based platforms has begun. Application development and delivery professionals seeking new delivery models can benefit from these new platforms. Force.com is gaining momentum and given its history will emerge as one of the top 3 platforms for both customers and software vendors. The real question out there - what will vendor lock-in look like in the world of cloud computing? Will it be like the mainframe lock-ins 40 years prior?

Your POV.

Are you considering a SaaS deployment? Will you move to the cloud? Are you a software vendor looking at ditching your on-premise middleware platform? Feel free to share with me your thoughts. You can post here or send me a private email to rwang0@gmail.com.

Copyright © 2008 R Wang. All rights reserved.

Tuesday’s Tip: SaaS - Integration Advice

Continued interest in software as a service (SaaS) stems from the pay as you go pricing, constant stream of innovation, rapid deployment options, and the ability to do an end run around IT. As the number of options proliferate, enterprises will increasingly lean on SaaS as the mission critical system. Thus, end users need an enterprise apps strategy for SaaS that addresses the "I" word - Integration. The requirements and leadership for integration will lead to the pragmatic realization that SaaS can no longer be ignored by the IT department. As organizations brace for the proliferation of SaaS procurements integration should focus on:

• Data mapping - as data moves from one system to another, data must be transformed accurately. More importanlty, service and related metadata are cataloged into a repository for discovery by management tools and development tools.
• Business process orchestration - granularity of web services must be harmonized so that the overall process flow is seamless among various systems. Integration services actively manage service access, execution and quality of service.
• Quality of service - Like SOA, QoS metrics ensure that the information flow was delivered to the right system at the right time for the right person. Characteristics such as security, transactions, performance, style of service interaction, etc. are explicitly identified and specified for each service

A few key solutions providers to watch out for in the SaaS integration space include:

• Blue Wolf Group - a system integrator with an Integration as a Service (IaaS) offering
• Boomi - a SaaS integration layer services company
• Cast Iron Systems - a software based integration appliance (i.e. hardware)
• Informatica - a data integration provider with a multi-tenant, cross-enterprise data integration on-demand service
• Magic Software - a business and process integration provider
  
• Pervasive- a data integration provider with an Integration as a Service (IaaS) offering
• Snap Logic - an open source data integration tool provider

The bottom line.

The successful adoption of SaaS solutions will transform usage from purpose built point solutions to integration into mission critical processes. The result - SaaS integration will emerge as a key discipline in the overall enterprise app strategies of enterprises who seek to manage a portfolio of provisioned services.

Your POV.

Have you completed a successful SaaS to on-premise integration? How'd it go? Was it easier/harder than your on-premise integrations? Feel free to share with me your view points. You can post here or sending me a private email to rwang0@gmail.com.

Copyright © 2008 R Wang. All rights reserved.

Trends: The Rise and Emergence of Appliances

2008 Trends Heralds A World Beyond SaaS

As the year begins to wrap up, I am already beginning to read the first rounds of predictions for technology trends for next year. Flowing from analysts, reporters, and industry pundits, among the first I caught yesterday listed in the top 10 industry trends for 2008 was increased adoption of functions (in this case security) delivered via the software as a service model. SaaS, as more commonly and easily referred to, has been red hot for a number of years and now is commonly believed to be the delivery model of choice for small and medium sized enterprises. I certainly don’t dispute the value of its ease of use and deployment benefits, nor the lower upfront licensing threshold that makes SaaS an attractive solution. However, SaaS is not the industry’s panacea for medium enterprises software adoption needs, principally because it is not a good solution to address certain functions. A case in point is in the management space. There are numerous management functions you simply cannot do over a WAN. The protocols are just not supported. Coupled with real issues around network latency and security, makes doing general purpose system management through a traditional SaaS model just not a good idea.

For Some Scenarios, Appliances Deliver The Same Benefits as SaaS Without the Long Term Costs

So how do you still get the ease of use and simplicity of deployment that SaaS delivers but for a function like systems management? You pull out a page from our short technology historical past—and I would argue our historical future too: you look to the appliance form factor. In full disclosure, my view is colored; I now work for a company, KACE, which delivers its product via an appliance. That said, I was also on the front lines of delivering early CRM and ERP applications via a SaaS model and have had ample time and experience to compare the two.

There’s a lot of truth in the statement: the biggest skeptic is the biggest convert. Indeed, I have found my religion in the appliance. It offers the ease of use and simplicity of deployment that SaaS does (slap it in the rack and turn it on), but operates within an organization’s network allowing you do everything needed to manage your IT environment securely and at blistering speed. And from the cost angle, more and more reports are being published about the real costs of subscription based pricing which while attractive up front, oftentimes proves more costly in the longer term.

Today's Perimeter Based Appliances Expand Beyond Yesterday's Purpose Built Approaches

My conversion to the appliance has been gradual. Like many in the industry and especially those coming primarily from enterprise software, my recollection of appliances dates back to the late 90’s when big enterprise players like IBM, Oracle, HP, and others were pre-installing their software on Dell or their own hardware and shipping a so called “appliance.” These “appliances” were really just pre-installed and configured servers and that was the limit of their value; it saved a sys admin a day of work getting a new server up and running. But today’s appliances are much, much more. For starters they really shouldn’t be called simply “appliances.” They are “purpose built appliances:” built from the ground up with a specific function and way of operating in mind and optimized for such. They take the black box approach to solving a problem where everything that is needed (database, OS, reporting software, etc) is built into the application, as well as all hardware required, and optimized for its specific function. The result: an all in one approach which in most cases simply needs to be plugged in.

Perimeter-based appliances have seen widespread adoption already. These are appliances that generally sit at the edge of a network and don’t require a lot of administrative interaction. Firewalls are great examples of such. There is, however, a whole new generation of appliances that could be classified as server application appliances. These have become core to the data center and are being used by administrators on a daily basis. Companies like IronPort (now Cisco), KACE, and Cast Iron are all great examples of such and have rapidly carved out a place for themselves within their respective functions of security, systems management, and EAI. This new generation of appliances is also finding a sweet spot among the customers whom they serve. While the companies mentioned above may have started out targeting different customer segments and sizes (and some still do), they have seen strong adoption by medium-sized enterprises. The reasons for this are the same reasons SaaS has succeeded; they offer a model of simplicity that is easy to deploy, comprehensive in nature, and cost effective. For the medium enterprise which is oftentimes resource constrained and lacks the expertise and know how to take on complicated software deployments, the simplicity of the appliance approach is ideal.

The bottom line for users

CUSTOMER TESTIMONY IN SYSTEMS MANAGEMENT APPLIANCES PROVIDES A POSITIVE PROOF POINT

My own conversion to the appliance was made complete when we held our user conference last month and I had the opportunity to speak with numerous customers about how they are using their systems management appliances. It literally blew me away. The customers love the appliance model! Mostly medium-sized companies ranging from schools districts, state and local entities, to financial service providers and manufacturing concerns, I heard the same statements repeated again and again:

• “I love the appliance form factor.”
• “I love the simplicity.”
• “I love the design of the system.”
• “I love the comprehensive nature of your offering.”

With more than 15 years of software industry experience under my belt, I can count on one hand how many times I have heard the word “love” to describe products I’ve worked on. In two days, I heard it, at least, two dozen times. When you hear a chord that resonates, you just know it works. I walked away from the user conference knowing the appliance model is here to stay and more than likely, poised to take off.

If you want to learn more about server application appliances and how they compare to SaaS, check out this white paper. It requires a registration, but is a good one.

(The personal contents in this blog do not reflect the opinions, ideas, thoughts, points of view, and any other potential attribution of my current, past, or future employers.)
Copyrighted 2007 by Wynn White / R Wang/ Software Insiders Point of View. All rights reserved

Trends: The True Small Business Market

(Image courtesy of NetBooks)

Software trends come and go in cycles. Currently we're in the midst of a focus on partners, ecosystems, and the small business market. Yet, that definition of small business is all over the map. Some vendors look at 1000 employees or less. Others size by revenue and say its $500M or less.

Yet, a great conversation this past Thursday morning with Ridgely Evers, the "Father of QuickBooks", set me straight on a market smaller than SMB! Ridgely's new company NetBooks passionately focuses on what they term a "True Small Business" or TSB.

Here are some key characteristics:

• less than 50 employees (typically 2 to 25)
• management by a founder or owner
• lack of "professional" management or capital investments
• profitable and growing organically
• focused on ease of use versus power
  

Ridgely proceeds to size this market at a conservative 5.1M TSBs in the US.

Based on the conversation, the NetBooks solution targets a very specialized but dynamic TSB niche looking for:

• Easy to use solutions
• High-touch support and deep relationships
• Hosted solutions
• Valued price points

With a full suite that covers production, inventory, compliance, shipping, book keeping, marketing, sales, and CRM, TSB prospects should keep an eye on NetBooks. Vendors competing head to head may want to evaluate whether a hosted model could best shrinkwrap.

(The personal contents in this blog do not reflect the opinions, ideas, thoughts, points of view, and any other potential attribution of my current, past, or future employers.)
Copyrighted 2007 by R Wang. All rights reserved

Trends: What's all the fuss about True SaaS, OnDemand, Hosting?

•As many of you know, there's mass confusion out there about what's really SaaS, so time to clear the air on this topic. I'm going to give this some common definitions and hopefully this will help us figure out what's what and where the trade-offs are in all these deployment options.

1. Single Instance - (a.k.a. "On Demand"). Think traditional apps deployed one cusotmer per app or per server. Many vendors provide hosting capabilities. Customers don't worry about the IT infrastructure and retain the flexibility to modify, customize, and in most cases choose when they want to change the code. All customers can use different versions of the software
   
2. Multi Instance - (a.k.a. "Server Virtualization"). Think "VMware" like. Apps deployed into a shared-web hosting environment. A copy of the app is configured and deployed into a web directory for each customer. Vendor benefit from easier to manage environments. Customers don't worry about the IT infrastructure and retain the flexibility to modify, customize, and in most cases choose when they want to change the code. All customers can use different versions of the software.
   
3. Multi-tenant - (a.k.a. "True SaaS"). Apps in a multi-tenant deployments provide a single operating environment shared by multiple customers. Config files are created and deployed each time a customer request services. Customers don't worry about the IT infrastructure and retain the flexibility to modify, configure but NOT customize the code. Customers usually receive upgrades at the same time. Everyone shares the same code.

From least expensive to most expensive to run for a vendor:

1. True SaaS
2. Server Virtualization
3. On Demand

Why is this important? Let's see, you choose an OnDemand solution and the vendor's costs to run the app goes up with each new customer as it has to manage the different environments. No matter how hard the vendor will try to "fit" everyone to standard configurations and deployments, that's not always possible. Flexibility has a cost. In a "True Saas" solution, the cost to add an additional customer is minimal and each customer reduces the overall cost for everyone. Ultimately, a True SaaS deployment will have the lowest cost/user/month fee. What will you do 5 years into an OnDemand scenario when you are locked in?

From most customizable to least customizable for a customer:

1. On Demand
   
2. Server Virtualization
3. True SaaS
   

Why is this important? Your may have specific needs in an area where the SaaS vendor has not provided the deepest level of configurations. You can't just go in and modify the code unless everyone else wants it or the vendor's has it on the roadmap. The cost of comformity is the lack of flexibility. What will you do 5 years into a True SaaS scenario when you are locked in and the vendor won't add the feature or functionality you need?

The bottom line:
Keep in mind there are cases where one deployment option is more favorable than another. Just because you are multi-tenant SaaS doesn't mean you are better. On the other hand, when vendors tout OnDemand as a SaaS offering, then the SaaS bigotry begins. Be on the look out as more vendor provide mix-mode offerings to support disconnected modes, SaaS and On-premise, as well as other improvements in integration with stronger client side ESB's.

....

Editorial Note: (September 5th, 2007) Just noticed a great posting that really showcases the point here. This applies to all the vendors who did not architect for SaaS and are now playing catch up.

Phil Wainewright's Posting on Oracle's Misconceived SaaS Strategy


(The personal contents in this blog do not reflect the opinions, ideas, thoughts, points of view, and any other potential attribution of my current, past, or future employers.)
Copyrighted 2007 by R Wang. All rights reserved

Apps Strategy: Responding to Tectonic Shifts In the Software Industry

As the software industry matures and transforms itself, four key forces converge to shape a new future for the software industry. Despite these tectonic shifts impacting clients, enterprise software strategies should focus on the business users and the processes they support.

The 4 tectonic shifts impacting clients include:

1. The post Y2K upgrade cycle harkens the technology move to SOA - The shift to SOA harkens to the shift to web based computing a decade ago. We know its coming. We have some idea what to expect but no one knows for sure. As enterprises upgrade from existing legacy systems to software "architected for SOA", we enter a new technology spending cycle.
   
   The result: CIO's, Vendor Sourcing Professionals, Business Users, and IT professionals have one shot to get this right or wait it out another 7 to 10 years for the next major upgrade cycle. The applistructure you choose will be one you live with, especially as vendors create lock-in onto their platforms at the same time they push "open standards". Users should negotiate their software contracts with care taking into account the impact of SOA and middleware.
   
   
2. SaaS moves buying decisions from IT to the business user - By changing the rules of the game, now a VP or GM can go out and buy 100 licenses without going to the board for capital budgets or talking to IT about support and dependencies. Imagine that... operational expense and not capital expense and potentially no IT integration. (We'd still caution that you talk about integration with the IT guys).
   
   The result: Business users gain control of software buying decisions for edge applications like CRM, performance management, talent management, recruiting, incentive comp, corporate email and other productivity tools. IT leaders may be stuck with integrating a plethora of SaaS applications back to the on-premise hub. Architects should consider an overall ESB and meta data management strategy!
   
   
3. Web 2.0 apps transform Enterprise 2.0 apps - As the innovations in Web 2.0 such as rich internet applications, AJAX, and mash-ups make their way into enterprise software, how we collaborate, integrate, and view business processes will be transformed in the enterprise.
   
   The result: What's we use at home and what we use at work will collide. Users should be careful as to how they blend work and their private lives. However, all users will benefit from the innovations of mash-ups and other Web 2.0 innovations as they become pervasive in the corporate environment. CIO's will have to establish extra vigilant but security policies to address new flexibility and interoperability requirements from users. Just like IM 5 to 7 years ago, we now have more external integrations that increase security risks.
   
   
4. The future rests with solutions centric ecosystems- A maturing software industry increases specialization in core areas and becomes more reliant on dominant applistructure platforms as ecosystem hubs for applications, business processes, and related web services.
   
   The result: Users have an opportunity to band together in industry consortiums to dictate how IP is created and shared in enterprise software. System integrators and vendors will try to "own" the IP in last mile solutions but will not be able to address all scenaris. Users will take advantage of the improved middleware tools to create a new renaissance of custom applications built on standardized tools. Custom dev will come back with a roar!
   
   

As you can see, these shifts create significant impacts and should be factored as long term apps strategies are being developed.

(The personal contents in this blog do not reflect the opinions, ideas, thoughts, points of view, and any other potential attribution of my current, past, or future employers.)
Copyrighted 2007 by R Wang. All rights reserved

Apps Strategy: Now's the Time to Design a 5-Year Packaged App Strategy

What do ERP fatigue, instance consolidation, upgrades, SaaS, third party-maintenance, and BPO have in common? They are all stop-gap measures in addressing the key issue of having a long-term apps strategy.

Some key areas to consider include:

• Most packaged apps were bought in the mid to late 1990's
• Software lifecycle is about 7 to 10 years and we are entering a new upgrade replacement cycle
• Large demand for small projects skirt the real issue of a need for a packaged application strategy
• Architectural renewal via SOA and adoption of Web 2.0 functionality driving interest

As we move into one of the biggest upgrade cycles in a decade, enterprises should take the time to design a top-down view of their apps strategy before committing project budgets. A high-level view of the key components of this strategy include:

• Long term vendor strategy and management
• Packaged applications internal inventory
  
• Maintenance and support schedules
• Upgrade strategy
• Instance consolidation strategy
• Deployment option analysis (SaaS, Hosting, BPO, or On-premise)
  
• Change management readiness
• Business process maturity
• Custom development requirements
• Hardware/data center migration plan
  

(The personal contents in this blog do not reflect the opinions, ideas, thoughts, points of view, and any other potential attribution of my current, past, or future employers.)
Copyrighted 2007 by R Wang. All rights reserved

Industry View: SaaS Applistructures Deliver on the Promise of Tying Web 2.0 to Enterprise 2.0

Walking out of the SalesForce.com Event on Tuesday the 10th had me thinking about the promise of Web 2.0 for the enterprise via middleware, SaaS platforms, and this notion of Applistructure. The thing that really struck home was not the utility computing model that Marc rants and raves about, nor the great drag and drop content management capability of Koral that was being demo'd. What struck home more than anything was how applistructure was taking shape via SaaS and how quickly SaaS could deliver Web2.0 capabilities to the Enterprise.

Okay, let me take a step back, what's applistructure? Well, applistructure refers to the boundary blurring between business applications and infrastructure software. Originally coined by Ken Vollmer of Forrester (Giga) in 2003, the term is shaping up, especially with the rise of middleware platforms (e.g. IBM WebSphere "Blue Stack", Oracle Fusion Middleware "Red Stack", Microsoft VS.Net "Rainbow Stack", and SAP NetWeaver "Blue and White Stack") that are doing everything from being the appserver, delivering BPEL, modeling business processes, addressing content management, providing business intelligence, coordinating master data, solving identity management, etc. SaaS itself is an applicstructure and as these applistructures take hold in the enterprise world via middleware, the SaaS vendors including SFDC, NetSuite, and WorkDay, have the best opportunity to deliver on most of the collaborative aspects of Web2.0.

Unfortunately for most enterprises, not much of the Web 2.0 impact we feel here in the Valley has made it into the mainstream middleware platforms. In fact recent announcements of Lotus Quickr, SAP's end-user widgets, Microsoft Office 2007, and Oracle Web Center show slow to moderate progress in this arena. Hot for Web2.0 for years has been tagging, mash-ups, social network, participation architectures, and the spirit of the individual and wisdom of the tribe. Though we're starting to see wiki's, blogging, and RSS become the new collaboration standards for enterprises its really been the SaaS movement that's driving Web2.0 adoption into the Enterprise.

Similar to the shift in attitude on utility computing and the simplification of licensing and pricing to cost/user/month, I think we can count on SaaS to be the game changer again. I eagerly await to see what other Web2.0 innovations like the Koral acquisition by SFDC will make its way to the likes of SAP, Oracle, Microsoft, and IBM in this emerging solutions centric software world order.

(The personal contents in this blog do not reflect the opinions, ideas, thoughts, points of view, and any other potential attribution of my current, past, or future employers.)
Copyrighted 2007 by R Wang. All rights reserved

News Analysis: SAP in a Post-Shai era?

It's hard to believe that less than 7 years ago, SAP was seen as a stodgy, client-server based, and very stubborn German software company. That transformation from "borg-like" vendor to innovator wasn't easy, but at the helm of that transition was Shai Agassi. As one of the few non-German executive members, he harnessed the can-do attitude of Silicon Valley, brought the Israeli practicality, and tied the engineering talent of SAP closer to the pulse of innovation. And despite the skeptics, he shifted power away from Germany and Newtown Square to Palo Alto.

Looking back, Shai leaves an organization with quite a legacy. First and foremost the transformation from client-server to internet. Shai also drove the efforts to get mySAP CRM out the door and build out the mid-market. But even more importantly, the strong software ecosystem and partner network that Shai so evangelized leaves SAP with the foundation to innovate and build last mile solutions so needed in the micro-vertical market. SAP's success in building buzz and attracting ISV partners includes work with Microsoft on Duet that continues to differentiate SAP from its chief competitor, Oracle, in the applications space. Finally, the vision and swagger Shai brought to SAP will be the most memorable. Customers often left impressed by the possibilities they could see in their investment in SAP.

Yet, challenges abound for SAP in a post-Shai world with or without him. Microsoft shows continued success in the SMB side of the house with wins in hub and spoke SAP environments and subsidiaries of SAP enterprises looking to wean themselves from the high cost of ownership and upgrade to mySAP ERP 2005 Meanwhile heavy discounting by Oracle in the large enterprise space, put quite a squeeze on SAP in the near term for new business in the large enterprise space, as only Oracle can afford to bolster app sales with middleware and database revenues. SaaS entrants like SalesForce.com and NetSuite chip away at SAP's cost structure and usability while the entrance of Dave Duffield's WorkDay may complicate SAP's efforts to beat Oracle/PeopleSoft at HCM. As user experience becomes important, SAP has fallen behind in building products that showcase the best of Web 2.0 meets Enterprise 2.0.

So while Shai brought vision and innovation, much work needs to be done in a post-Shai world. The need to execute becomes greater as promises made to customers, partners, and employees must be kept. Investment for better tools in NetWeaver and MDM would help partners build more efficiently and allow for a stronger ecosystem foundation. Success in the mid-market and a strong SaaS offering would put competitors SalesForce.com, WorkDay, Oracle, and NetSuite on the defensive. Moreover, a move away from middleware infrastructure in general would expedite the transition from Oracle database to anything else and keep SAP from indirectly funding future Oracle acquisitions and Oracle's development of competitive products.

But without a visionary like Shai at hand, the top tier talent he brought into the valley will need a reason from management to remain. Execution of Shai's vision has always been the most challenging role to play and we will know in the next 3 to 5 years how SAP will fare in the market. Yet despite execution being the key to near term success, SAP will still need an articulate visionary at the helm or risk retreating on the visibility and panache Shai brought to the industry.


For additional information:
Official SAP Press Release
San Francisco Chronicle
SearchSAP.com
Managing Automation


(The personal contents in this blog do not reflect the opinions, ideas, thoughts, points of view, and any other potential attribution of my current, past, or future employers.)
Copyrighted 2007 by R Wang. All rights reserved

SaaS: SaaS takes off in Japan

Tokyo still remains one of my favorite destinations in APAC and on a visit with clients and media, it became quite apparent that SaaS was top of mind in the market. I wondered if I had came to Japan a week after Marc Benioff or if the market had been that enthusiastic to begin with. (I would later find out it was SalesForce.com's Japanese AppsExchange pre-announcements. )

In either case, the number one topic of interest from system integrators related to how one could build a SaaS business. Meanwhile customers sought more information on SaaS offerings and the media kept asking for details on the difference between SaaS, Hosting, ASP, and OnDemand. SalesForce.com and NetSuite had top billing in terms of mindshare, while WorkDay remained of major interest given the tie back to PeopleSoft founder Dave Duffield.

SaaS continues to gain mind share, especially as customers remain frustrated with paying so much for maintenance, receiving very little in terms of value in upgrades, supporting legacy applications, and refusing enhancements and feature requests to the business side. More importantly, business leaders in large enterprises choose SaaS mainly because they can do an end run on the IT department, receive new functionality, and pay for it using operational expense instead of capital expense. That last bit is key because they don't need board approval for an operational expense. As more business leaders weigh-in on IT decisions, SaaS vendors see growing interest from enterprises instead of the SMB market as anticipated.

Related Forrester Research
Comparing The ROI Of SaaS Versus On-Premise Using Forrester's TEI™ Approach
The Financial Impact of Packaged Applications
The State of Enterprise Software Adoption


(The personal contents in this blog do not reflect the opinions, ideas, thoughts, points of view, and any other potential attribution of my current, past, or future employers.)
Copyrighted 2007 by R Wang. All rights reserved