SaaS - Is It Too Early to Buy? - SaaS Week

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January 29, 2008
SaaS - Is It Too Early to Buy?

It looks like SearchCIO.com has an interesting piece with reader feedback to a comparison of the SaaS model to the application service provider model. In the piece, the SearchCIO.com editors basically posed the question to readers as to whether the SaaS market was really viable at this point. Should potential buyers wait for a market shakeout, especially since SaaS is still sort of an emerging technology?

Readers pretty much agreed that the SaaS model is here to stay (duh). Although it might not take over the world, the SaaS model fulfills a definite need and can provide a viable option for many companies.

Some readers questioned the comparison of ASP to SaaS, pointing out that ASP had a much higher initial expense and that SaaS has a better value proposition. In addition, one reader claimed that ASPs were undifferentiated and correctly pointed out that SaaS providers have different propositions.

What do you think? I think we should be beyond the point of wondering if SaaS is here to stay by now, but could there be merit to the idea that waiting to implement SaaS until the market is more stable and the vendor shakedown has taken place?

Tags: SaaS, ASP, market trends,

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Comments

I think if there is a definite market need for SaaS(and who denies it) then it has to be fulfilled now.
In the olden days, when there was a need felt for ERP or CRM applications, customer didn't wait till the market stablized or consolidated or even evolved. There is a compelling business proposition which SaaS presents and in this uncertain economic time, customers will be hard pressed to look for safer and flexible IT investments which will drive their SaaS adoptation instead of buying out time till the market stablises or consolidates.
If JDE and Siebel are acquired by Oracle, did the
customers who invested in them early on had to loose much? I don't think they would have been better off had they not invested in these business apps early and had waited for this takeover to happen. And Saas is not even a particular application, its more of a IT operation model and hence even safer to invest now.

Posted by: Anil Gaur at January 30, 2008 05:21 PM | Permalink