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Thursday, February 14, 2008
Software-as-a-service vendors find the biggest disruption is with regard to the workforce. Financial disruption comes second - The traditional sales team and revenue recognition culture also play a part – used as they are to up-front revenue recognition. Channel sales, maintenance revenue stream –all add up to a certain degree of disruption. The partner ecosystem characteristic also suffers a dent in the SaaS world.
A new software service economy is rapidly unfolding and is causing disruption in the software industry. Ironically, some of the first victims of this new economy may be some pioneers of the software-as-a-service movement. We are now at point where implementers of SaaS capabilities are being disrupted by newer SaaS capabilities. Services that are built largely from other services are a reality, and offer many clear advantages.
Many forward looking SaaS firms look to constantly evolving highly leveraged cost model and focus on broadbasing offerings and creating a new ecosystem of partners – for the technology stack and for supporting varied business processes. Clearly SaaS winners are one who find ways to to combine their strengths with other entities – and that include managing Software/services “collision” well.|
|Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld