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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.

« Microsoft Tries to Answer SaaS Competition; Adobe Throws Hat in Ring | Main | Slow Internet Connections: A SaaS Sticking Point »

October 03, 2007
Do Microsoft's SaaS Services Stink?

In responding to Microsoft's announcements earlier this week, numerous sources around the Web have some things to say. Sean Gallagher of InfoWorld wondered whether Microsoft could manage IT online. He pointed out that SaaS is well proven by Salesforce.com and similar companies but that Microsoft's efforts so far in the Live space just aren't really cutting the mustard.

Despite having an advantage by a wide base of existing customers that could theoretically migrate to on-demand applications, Microsoft's Live services "have been a bomb in the consumer and small business sector," Gallagher says, and the company could stand to work on its Internet services strategy.

Phil Wainewright at ZDNet called Microsoft's approach equal to one of the three monkeys (along with SAP and Adobe): Speak no SaaS, and said that Microsoft's strategy appears to be launching of services complementary to its products but not offering anything that might compete against its on-premise software, but wondered if Redmond might merely be trying to buy time to develop a better online strategy at the risk of sending customers elsewhere.

Meanwhile, Computerworld points out that Adobe seems to be taking a page from Microsoft's book and copying its "Software + Services" strategy and creating Web-based complements to its software in order to avoid risking cannibalization. Vendors definitely do seem to walk a fine line in their efforts to remain competitive while not teeing off their partners.


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