SaaS Consequences

Microsoft continues to move its focus from the desktop to the cloud with an announcement yesterday of Live Mesh, their new Web-based platform.

Microsoft Reveals a Web-Based Software System
By JOHN MARKOFF
http://www.nytimes.com/2008/04/23/technology/23soft.html?th&emc=th


I am a strong proponent of software-as-a-service (SaaS) as it gives a company the ability to concentrate on its core competencies while better managing its technology spend. In fact, one of Strategic Communications Group’s (Strategic) exciting client engagements is with GovDelivery (http://www.govdelivery.com/blog/), a SaaS provider of Email and digital subscription management solutions in the public sector.

However, I’m concerned that an unintended consequence of SaaS is the devaluing of the very solution being delivered. If everyone uses the same hosted CRM then that function within the enterprise becomes commoditized. The same could be said for HR, supply chain and finance.

Unique technology has historically provided companies with a competitive advantage. Is that era now at an end? I’m not proposing a return to the days of complex custom builds. Rather, a blended approach of SaaS and proprietary systems may be the way to go.


New Content Addition (4.24.08): interesting survey about SaaS adoption finds it remains a top priority, yet adoption has slowed.

SaaS, Web Services Top Software Priorities For Businesses
A new research report also shows signs of SaaS's maturity, with fewer businesses reporting they adopted SaaS for the first time last year.

http://www.informationweek.com/news/services/saas/showArticle.jhtml;jsessionid=5TK03ZVR5IPXAQSNDLPCKH0CJUNN2JVN?articleID=207401640&_requestid=109335