Subba’s Serendipitous moments

May 10, 2007

Microsoft turning attention to software as a service (Saas)?

Filed under: Business,Model — Subbaraman Iyer @ 11:19 pm

Ray Ozzie Microsoft’s chief software architect makes a reluctant acceptance that Software as a service is here to say. News that Microsoft will offer online version of some of their applications has been in the air for a long time, and with this public statement from Ray, it looks like a certainty.

Ray makes some very great points–about people taking extreme positions when evangelizing for change; be it in technology or a business model. Human behavior, for what it is has been slow to accept extreme positions withing short periods. No wonder, main frames continue to be sold. We often over estimate the impact of the change in the short term, and at the same time underestimate its impact over the long term.

Now that salesforce.com has more than proved the model, and scaled their offerings, the industry seems to be accepting that the model is here to stay albeit reluctantly

Coming to SaaS, Microsoft puts its own spin to it. It has coined a new term Software and a Service (SAAS).

How much effort Microsoft puts in adopting the new model and doing away with their existing business model will be seen in the next couple of years.

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