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Is SaaS Dead?

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As Andre Yee brought up in this blog, Is SaaS Dead? Neil McAllister recently asked on Infoworld, Is the SaaS experiment finally over?  What do you think?

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  • Is Google dead? :-)

  • SaaS is alive and well... The only time it's reasonable to start talking about whether something is dead is if people start talking about "3.0"...

  • maybe calling stuff dead is dead

  • SaaS, PaaS, IaaS, cloud whatever you want to call it...that giant sucking sound that you hear is the Internet.

    The low cost of shared infrastructure combined with the huge advantages of global connectivity will continue to pull IT workloads away from the cottage industry of do-it-yourself on-premise software into the mainstream, connected, commodity Internet for decades to come.

    SaaS may die, but it will only amount to the term itself, not the reality. By narrowly defining SaaS as a straight out replacement for traditional on-premise enterprise categories, Gartner and others miss the point entirely. Replacing legacy systems that have millions and millions of sunk dollars and huge switching costs may or may not happen depending on the category...and will take decades.

    Despite the success of salesforce.com, SaaS is best defined as all software delivered as a service over the Internet. With regard to the enterprise, the focus should be on new categories that really leverage the Internet, like search, search advertising, online publishing, mobile, communication & collboration, and cloud computing. These applications are as important to enterprises today as accounting systems....and they don't all amount to spending that is a one-to-one replacement of traditional on-premise enterprise software.

  • Is SaaS dead? No.

    Should every software vendor become a SaaS vendor, no as well.

    Before we all quote Samuel Clemens on the reports of his death being “greatly exaggerated�, let’s just do a bit more name dropping: Salesforce, Google, Success factors, GE Health Services, Ceridian, PayChex and ADP, just to name a few.

    Watch where the VC community is investing in software development these days. If SaaS is “Dead� then the VC community is planning one heck of a send off party.

    Real SaaS companies understand that it takes much more than simply charging on a monthly basis to become a mature and respected SaaS vendor. Committed SaaS vendors invest in their service, stand behind their SLA’s, security, and innovative road-maps. Pure play SaaS vendors understand the the cost and investment requirements for delivering a quality service. Customer support and quality offerings are needed to keep customers coming back.

    That's point, SaaS is more than just developing software and allowing organizations to pay over time; it is about providing a quality service at a reasonable cost and need to continually innovate to keep customers coming back.

    Let's see if Neil McAllister will be making headlines asking the same survival question of on premise software companies three years from today.

  • The idea that SaaS is dead is so ludicrous that I couldn’t bring myself to respond to Neil’s column directly when it was first published two weeks ago. Gartner has been wrong about SaaS since the beginning and continues to misread the tea leaves regarding the current rate of SaaS adoption because they only talk to their traditional IT clients who are still trying to resist today’s trends because they see them as a threat to their jobs. As a result, Gartner refuses to recognize the growing array of customer success stories which clearly illustrate the tangible and measurable business benefits being generated by SaaS and the broader cloud computing services. Instead, they prefer to through endless warnings in the way of the market growth in the form of self-serving analyst reports which only rehash commonsense vendor selection and management principles. The fact is that the SaaS ‘experiment’ is definitely over. It is now a mainstream movement. Long live SaaS!

  • To paraphrase Anne Thomas Manes: 'SaaS is Dead... Long Live Services'

    It's all about the well-managed delivery of services to the business, either from another part of the enterprise or from an outside provider. Call it SOA, call it REST, call it SaaS, call it 'Fred.'

    Services are a very sustainable concept, and very much a part of the business technology future.

  • Definitely not. It is going Mainstream. Is it possible for enterprises to replace implemented SaaS CRM services by Data Center CRM systems? Is it reasonable to replace gmail or gmail like services by on premises e-mail? SaaS is adequate for the mobile connected from every where collaborative reality.
    After yesterday's stoppage of Google services for few hours, I would not say that the SaaS model is free of challenges. We are Locked in some of Google services.
    For more information read my post: Future Applications: SaaS or Traditional? http://avirosenthal.blogspot.com/2009/10/future-applications-saas-or-traditional.html

  • I can see why someone may ask if SaaS is dead. It has a number of challenges, but I beleive SaaS is the best argument for cloud computing services...

    The issue is that so many people paint SaaS and Cloud Computing as "this is what we will all be doing" type of future. This is wrong, SaaS wont replace in house software, nor will cloud computing scenarios replace in-house server client / private cloud implementations. Rather these are new options on how to work. SaaS removes so many barriers to entry for software adoption so therefore it is a great solution for many organisations...

    The key is using SaaS correctly for your organisation. Dont use it for mission critical systems, don't use it if you have compliancy issues over where data is physically stored and don't use it if you want lots of cross application integration. However, if you looking for a good solution to a business problem, that doesnt require you tackle the forementioned issues, then SaaS may well be the best option for you...

    Is Saas for all types of software solution? NO...Is SaaS going to replace traditional software implementations? NO. But this doesnt mean it is dead...

  • For a dead or dying market, the big boys seem to be falling all over themselves to establish platform and infrastructure as a service offerings. Case in fact, today's announcement by IBM ... IBM Expands Cloud Computing Capabilities With New Cloud Competence Center in Germany. That aside, to continue the nurturing and maturation of SaaS, we do need to see more innovation in the applications coming from the SaaS vendors. There are a large number of existing SaaS applications that still retain their first generation look and feel. Hopefully, we will see more leadership and innovation coming into the SaaS marketplace like Salesforce.com's Chatter enabled applications.

  • Not only is SaaS alive and well, it is actually thriving. As Jeff Kaplan and others have said, it is going mainstream. Along the way, it's also experiencing growing pains and the burden of meeting overly heightened expectations.

    I think you can expect to see it evolve dramatically over the next 3 years

  • SaaS is not dead – it is just Washed Out.

    The intense hype around SaaS ripped any and every conceivable meaning associated with it and rendered it almost useless as a definition term. Also, the initial business model of SaaS (flat subscription based) is giving way to more sophisticated and pay-per-use models, as the technology evolves and enables more granular usage tracking.

    And that evolution is the best proof of the viability and the healthy perspective of rendering Information Technology as a service.

    But there will be a tough and hazardous transition for many traditional software vendors (see my post on surviving the dark side of the Cloud).

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