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Krissi Danielsson
SaaS Week
SaaS Week discusses market trends and roundups of Software as a Service (SaaS) industry news, along with social networking, collaboration, and other neat enterprise Web 2.0 technologies. SaaS Week also offers Q&As with interesting Web 2.0 and SaaS vendors.

« July 2006 | Main | September 2006 »

August 31, 2006
As Google's SaaS Assault Begins-Move Over Microsoft Office?

Does the releaseA Tuesday, August 29,A ofA "Google Apps for your Domain" sound the death-knell for Redmond's world domination? That is the question sweeping the industry now that the owner of the world's most-used search engine has released a set of hosted applications "for organizations that want to provide high-quality communications tools to their users without the hassle of installing and maintaining software or hardware."

More here...

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August 29, 2006
Induslogic and OpSource Form Strategic Alliance to Deliver Complete Software as a Service (SaaS) Solution to ISVs Adopting the SaaS Delivery Model

Induslogic Inc. is a leading global product development services company and a partner to many emerging software leaders helping them bring great products to market in less time and at less cost.

OpSource, the SaaS experts, is solely focused on providing the operational infrastructure and ongoing services that enable software companies to deliver and maintain the highest quality Software as a Service (SaaS) solutions.

With this partnership, Induslogic is addressing emerging opportunities in the area of on-demand application development and architecture, which will help advance the adoption of the on-demand delivery model.

Software companies can now turn to Induslogic and OpSource for a complete SaaS application engineering and delivery solution, thereby addressing time-to-market challenges and allowing them to focus on what they do best, creating, marketing and selling their products.

TogetherA they will enable traditional software companies to make a successful transition from yesterday's perpetual license, on-premise software delivery world into tomorrow's SaaS world, benefiting them, their customers and their investors.

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August 27, 2006
SIIA Taps ThinkStrategies' Jeff Kaplan for SaaS Executive Council

The SIIA (Software & Information Industry Association) has announced Jeff Kaplan, founder of THINKstrategies, is among the founding members of its SaaS Executive Council. Founding members also include OpSource, IBM, Navisite, WebEx Communications, Keychain Logic, salesforce.com and Intacct.

For more on the SaaS Executive Council, click here.

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August 25, 2006
Software Vendors Jumping on SaaS Wagon

Pioneering vendors of SaaS have made their point in defending their model against suppliers of traditional on-premise software, but what will the consequences be?

Traditional software vendors, such as SAP, IBM, Oracle and Microsoft are beginning to see the wisdom of offering software on demand. Given their resources, these companies are poised to participate, and perhaps even dominate the SaaS space.

More here...

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August 24, 2006
Amazon Computing Cloud

Amazon offering now Amazon Elastic Compute Cloud (Amazon EC2) is a web service that provides resizable compute capacity in the cloud. It is designed to make web-scale computing easier for developers.

Amazon: we can commission one, hundreds or even thousands of server instances simultaneously. Of course, because this is all controlled with web service APIs, your application can automatically scale itself up and down depending on its needs.

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SaaScon: September 25 - 26, 2006 San Francisco

The Software as a ServiceA Conference (SaaScon) is the only independent business to business event forA business andA IT professionals seeking to dramatically lower capital expenses, produce recurring revenue and streamline product delivery and support through the Software as a Service model.

For event information and registration click here.

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SalesGenius helps WebEx to close sales...

Genius.com, Incorporated,A creator of SalesGenius, is the leading on-demand provider of instant customer insight for sales and marketing professionals. SalesGenius instantly delivers individual web visit data directly to those who are responsible for customer engagement: front-line sales and marketing professionals at pricing starting at $49 per person, per month. Enterprise pricing is also available. For a free trial click on link above.

WebEx is the leading provider of software-as-a-service (SaaS) business applications. They have implemented the SalesGenius solution within their corporate business division, to the delight of seeing immediate ROI,A with improved closing of sales deals.A

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August 22, 2006
Axentis Introduces Program To Enable Faster Adoption of Leading SaaS-Based Governance, Risk and Compliance Solution

The Axentis Early Access Program Further Demonstrates Benefits of Software-as-a-Service Model by Saving Global 2000 Customers IT Resources and Expenses.A A A

Axentis, the leading provider of on-demand governance, risk and compliance (GRC) management solutions, today announced the availability of the Axentis Early Access Program (EAP). The new Axentis EAP service is dedicated to giving customers no-cost, no-risk access to a fully replicated, on-demand production environment for testing and assessing the impact of new product releases before their "go-live" date. Leveraging EAP, Axentis ultimately helps position customers to achieve their desired level of success.

As the only GRC company to fully deploy the SaaS model, Axentis already enables Global 2000 customers to more quickly leverage new software releases. This capability was evidenced after a recent product introduction when more than 80% of customers were actively using major new functionality within 30 days of release. With a typical on-premise enterprise application model this implementation process can take a majority of customers up to 1.5 years or more. The Axentis Early Access Program builds on this trend by enabling customers to now test their existing processes and configurations with upcoming releases and then identify the impact before they are rolled out to users. All Axentis customers are eligible to participate free of charge.

"By allowing customers to more rapidly take advantage of the latest GRC functionality, the Early Access Program further validates the unique value of the SaaS model," said Roger Bottum, vice president of marketing at Axentis. "One of the major downsides to the on-premise software model involves the amount of IT resources required to install, configure and replicate your environment with each new release. With the new program, our customers' specific configurations and data are available for testing and validation with no IT resources required."

More here...

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The Best Resource Government Isn't Using

In less than a decade, the next generation of ASP has arrived. This time, though, it's called Software-as-a-Service (SaaS), and government has started noticing. Economic development agencies in Ohio and Virginia, the Texas Department of Criminal Justice, the Social Security Administration (SSA), and the National Geospatial-Intelligence Agency (NGA) are some of the early SaaS adopters. But what exactly is Software-as-a-Service?

"SaaS is, very simply, delivering application functionality over the Internet through a Web browser," said Leo Jolicoeur, executive vice president and chief marketing officer of @Road, an SaaS provider. "When we first put a label on ASP, it was originally the concept of taking existing licensed applications and delivering them in a sort of hosted form for customers who didn't want to buy that application. So it was all about applications that currently exist in licensed form delivered to customers without all that investment."

SaaS, according to Jolicoeur, is more than a rebranded ASP -- it's ASP grown up.

"As it's evolved from the original ASP offerings to Software-as-a-Service, we're seeing a much deeper, richer, robust set of applications and services that didn't necessarily exist in license form before," he said. "I think, in the future, we're going to see most applications delivered in Software-as-a-Service form."

There are tremendous possibilities built into SaaS for government, the most obvious of which is running an enterprise without buying any software -- meaning untold millions could be saved in licensing costs. Additionally SaaS means an agency need not dedicate IT staff to maintain and troubleshoot the application. That is all handled by the provider.

Other benefits include easy integration, collaboration, and free and automatic software updates. In most cases, only a Web browser and an Internet connection are necessary to access the software. Furthermore, the existing IT infrastructure enables both highly reliable and secure connections. However, this same infrastructure nearly killed ASP in the 1990s because it was not developed well enough to render ASP sustainable.

"The old ASPs were just sending things over the Internet that weren't necessarily secure, the servers weren't reliable and they didn't have appropriate backup systems; they didn't have fail over systems. These are the kinds of things we have that the old ASPs did not have," said Steve Nesenblatt, public sector vice president of RightNow Technologies. "[ASP] has evolved into a more reliable delivery mechanism. I don't think there's a core fundamental difference other than it's matured as a system to where larger organizations can rely on it."

For government, SaaS presents an extraordinary opportunity. Currently the most common SaaS applications are customer relationship management (CRM) and enterprise resource planning (ERP) solutions, human resources software, performance management and e-mail systems. However, the potential exists to deliver hosted software environments where virtually any sort of software is available. Something as complex as an enterprisewide financial accounting system can be accessed just as easily as could a word processing program.

From the public-sector perspective, this represents the ability to dramatically reduce costs by eliminating licensing fees, maintenance costs and troubleshooting expenses while reducing the amount of labor needed to install, update and repair software housed on agency computers.

The question then is why is adoption in government so scant?

More here...

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August 20, 2006
SaaS Versus SaaS By Michael Hickins Reporter's Notebook

I attended a technology industry conference not too long ago and watched a group of executives from software-as-a-service (SaaS) vendors patting each other on the back and taking pot shots at their on-premise rivals.

More here...

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SaaS Driving Faster Implementation and ROI across the Enterprise, Says AberdeenGroup

Software as a Service (SaaS) is gaining traction in a number of enterprise application areas and making quick believers out of previous skeptics, according to AberdeenGroup. An Aberdeen study of 631 companies conducted from March to July 2006 verifies that the SaaS model is driving faster implementation times and quicker return on investment in five application areas. Free report.

More here...

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August 17, 2006
Jamcracker: The Ultimate SaaS Survivor

via ebizQ:This week we're staying in the Software-as-a-Solution space to focus on Jamcracker, a seminal survivor founded seven years ago as an .asp provider.
Last month, Jamcracker released version 2.0 of their Jamcracker Service Delivery Network. JSDN enables solution providers to instantly create turnkey online stores from which they can offer and deliver a variety of on-demand services.
VP of Marketing Don Best spoke about how Jamcracker survived the meltdown of the dot-com market in general and the .asp market in particular. Now, paper-thin margins have eased somewhat, security and accessibility has improved, and VARs, telcos and "anyone with a trusted relationship with their customer" are clamoring to add new services.

More here

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Microsoft Launches SaaS-Oriented Web Site

Internet News: The latest MSDN Solution community site from Microsoft is for architects and designers interested in software-as-a-service (SaaS)A development issues. The community site is a little light on content at the moment but will expand with more articles on best practices and case studies, podcasts and eventually sample code and patterns, according to Microsoft (Quote, Chart). The company is making a move to SaaS with Windows Live, and new chief software architect Ray Ozzie has made this his mantra at several public appearances. Much of the early content will be based on Microsoft's own experiences, said Gianpaolo Carraro, leader of the solutions architecture group in the Architecture Strategy Team at Microsoft. "It's no secret that SaaS is getting a lot of interest in the industry and one of the key aspects of understanding SaaS is having an application architecture that is in tune with a service delivery model. So it was important to provide guidance and best practices for how to architect SaaS," he said. Carraro said Microsoft felt it's important to start the guidance effort because there was a customer interest to get the core thinking out.

More hereA

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August 16, 2006
SaaS Apps Gaining Ground as Implementation, ROI Concerns Dwindle

Via E-Commerce Times : More companies are viewing the Software as a Service model as a viable delivery option for functions beyond CRM -- the area in which it has probably developed the greatest traction -- according to a new study by Aberdeen.

SaaS implementation times and return on investment cycles are growing shorter in such areas as sourcing and procurement, supply chain management, financial management and product lifecycle management, which is one reason more companies are interested in implementing such applications, Beth Enslow, senior vice president of enterprise Quintum VoIP solutions. The perfect fit for your Enterprise. research for Aberdeen and the study's author, told CRM Buyer.

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August 15, 2006
Software as a Service Driving Faster Implementation and ROI Across the Enterprise

ViaA PRNewswire: Software as a Service (SaaS) is gaining traction in a number of enterprise application areas and making quick believers out of previous skeptics, according to new Aberdeen research. Also known as on-demand or hosted applications, SaaS is changing how companies pay for, implement, and run their software applications. Aberdeen research of 631 companies conducted from March-July 2006 verifies that the SaaS model is driving faster implementation times and quicker return on investment. * Customer Relationship Management (CRM): Implementation in less than 2 months and ROI in less than 6 months * Supply Chain Management: Implementation in less than 3 months and ROI in less than 1 year * Sourcing and Procurement: Implementation in less than 2 months and ROI in less than 1 year * Financial Management: Implementation in less than 3 months and ROI in less than 6 months * Product Lifecycle Management (PLM): Implementation in less than 6 months and ROI in less than 1 year "Although the value proposition of SaaS is seductive, companies considering SaaS need to educate themselves on a number of factors to make a solid buying decision," says Beth Enslow, senior vice president of enterprise research for Aberdeen and report author. "First, realize that all SaaS is not created equal. There are five primary types of SaaS, with differing value propositions." The Aberdeen report, "The Software as a Service Buyer's Guide," documents the current usage of and interest level in SaaS across the major enterprise application areas and provides specific advice on which companies should consider SaaS for each application area and which will be better off with an on-premise solution. A complete SaaS evaluation framework is also provided to help enterprises make sound SaaS decisions. The Software as a Service Buyer's Guide is made available to the public through the underwriting of: Expensewatch.com, NaviSite and Sterling Commerce. Download a complimentary report copy at: http://www.aberdeen.com/link/source.asp?cid=3305&pid=PRBE081406

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August 14, 2006
Unleash Inc's Project Management Software

ebizQ First Look Podcast: Today First Look takes a foray into the Saas, or Software-as-a-Service Market, to look at Unleash Inc.as project management software that could revolutionize how people at institutions, municipalities and corporations engage in enterprise planning.

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August 10, 2006
Sybase CEO looks to eschew move toward SaaS

Computer World: Sybase is regaining ground in the database market. Propelled by last summer's launch of Version 15 of Adaptive Server Enterprise (ASE), Sybase's database license revenue for the second quarter grew 22 percent over the prior year -- the fastest rate in the past 12 years, according to CEO John Chen. But there's more: At a time when many enterprise software vendors are looking to reinvent themselves as Salesforce.com clones, Chen wants to turn Sybase into an old-school channels powerhouse, a la Microsoft. In an interview at Sybase's annual TechWave conference this week in Las Vegas, Chen expounded on that plan, as well as why the vendor's push into data integration doesn't threaten Informatica or IBM's Ascential lineup -- at least for now.

More here

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August 08, 2006
SaaS Provider WebApps Partners With Abertas

Via ebizQ.net WebApps, Inc.,A a provider of Software-as-a-Service (SaaS), with a major push in Time and Labor Management, has begun to expand its product offerings outside the Human Resources field.


This expansion is driven by the flexibility in software architecture. The goal was to develop a system that could be adapted to accommodate a multitude of markets. It is because of this flexibility that a strategic partnership between WebApps and Abertas Control Systems, a national identity-based control systems firm headquartered in Houston, Texas, was formed.

WebApps offers a software platform that features a very high degree of adaptability. This in combination with the fact that the software is accessed through an on demand model allows the system to be utilized within a broad spectrum of industries without the need for additional customizations. "Although our focus has been primarily in the Time and Labor Management industry, the software can be quickly and easily configured to accommodate an unlimited number of verticals," stated Chief Information Officer Dmitry Korsunsky. "We first chose to focus on this area because of the great potential there is for growth. We also realize how the software can be useful in additional industries such as healthcare and financial services, as well as many others."

More here

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August 03, 2006
Logicworks Hosts SaaS Seminar

Logicworks, a SAS 70 Type II certified managed hosting provider based in New York, is hosting a Software-as-a-Service (SaaS) seminar on Thursday, August 17, 8:00 to 11:00 AM, for the International Association of Microsoft Certified Partners (IAMCP).A Held at Microsoft New York City, at 1290 Sixth Avenue, the event will focus on the SaaS opportunity, growth of the market, strategies and issues, contracts, and outsourcing.

As online solutions grow in complexity, ASPs are evolving to a SaaS model to enhance online delivery, take advantage of Service Oriented Architectures (SOA), and scale robustly in a multi-tenancy model.

Logicworks will demonstrate how Software-as-a-Service can help organizations achieve recurring revenues, cost-effectively offer enterprise-level reliability to their customers, and minimize capital expenditures.

The detailed agenda is as follows:
For Developers:
- Application Development: How to code your application for SaaS.

For Network and Systems Administrators:
- The MicrosoftA(R) Solution for WindowsA(R)-based Hosting for Applications Version 1.0.

For Accounting Departments:
- SPLA: What is the Service Provider Licensing Agreement? How can one participate?

For CEOs and Presidents:
- Indemnification: Types of indemnification MS extends to partners.

For Legal Departments:
- SLA, Contracts, and Licenses: What to look out for when drafting SaaS contracts.

For CFOs and CIOs:
- Managed Hosting: The benefits of outsourcing to a managed services provider.

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August 02, 2006
SaaS Economics

Via ComputerWorld: Don Dodge has a great post on his blog about the economics of SaaS based on a Mass Technology Leadership Council session this past spring. He points out that the startup costs for a SaaS companjy are nearly double those of a traditional enterprise software vendor, but the payoffs are higher, too. Equity markets assign a great value to companies with predictable revenue streams and SaaS companies can move more quickly to enter new markets than packaged software vendors. In other words, it costs more to start a SaaS company, but you get back more in the long run.

There's a particularly interesting passage on the cultural shift that packaged software vendors need to make to succeed in the SaaS market. "If you are a sales person with a $1M quota and you have the choice of selling a $100K perpetual license, or a $2K a month SaaS subscription, which would you do? Some companies are changing their sales compensation models and metrics to level the playing field. They might give quota credit for 24 to 36 months of the subscription and pay commissions as the revenue comes in. Or they might just pay commissions based on 18 to 24 months of subscriptions."

They're going to have to do something. In my, podcast interviews with SaaScon keynoters Bill McNee and Tim Chou (Tim's interview launches Aug. 3) both used the same language to described packaged vendors' attitude toward perpetual licenses: "addicted." It is very hard to turn a business based on sales into one based on rentals, yet that's precisely what big software makers have to do to get SaaS religion. Imagine how many management cycles are going to be burned making that change at an Oracle or a CA.

More here

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August 01, 2006
Symantec readies for SaaS plunge

Via ComputerWorld:Symantec Asia Pacific vice president David Sykes has confirmed Symantec will move to offering software on a subscription based service with new enterprise "buying" plans expected to be ironed out within the next 12 months.

The vendor will use perceived Software as a Service (SaaS) demand in the consumer space to give the idea a leg-up for enterprise firms, as evident with the upcoming release of the Norton 360 package.

Sykes said ultimately storage will be part of the SaaS offering, but the company is concentrating on addressing consumer security before extending the security software as a service model across the full enterprise portfolio.

"Certainly enterprise firms are going to be interested in the model as a way to reduce cost of ownership, but I think we will see consumers lead the charge as broadband adoption increases so we will take that momentum and expand it for the enterprise," Sykes said.

"Basically, it is a move to a subscription-type model and rather than an upfront licence payment. We will use regular monthly or quarterly payments with the enterprise space taking a different order of magnitude based on usage, maintenance and content, but at the moment we are focused on delivering SaaS for consumers first and gradually roll the service out to enterprise customers.

More here

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