Comments on: Is there a SaaS 1.0 and a SaaS 2.0? http://www.diversity.net.nz/is-there-a-saas-10-and-a-saas-20/2008/04/29/ Commentary and Analysis for User-Centered Technology Fri, 10 Feb 2012 03:02:25 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Bunreasonable http://www.diversity.net.nz/is-there-a-saas-10-and-a-saas-20/2008/04/29/comment-page-1/#comment-3668 Bunreasonable Tue, 29 Apr 2008 01:45:45 +0000 http://diversity.net.nz/?p=1020#comment-3668 http://smoothspan.wordpress.com/2008/04/29/integration-and-expertise-matter-more-for-saas/ another take on the same theme - http://smoothspan.wordpress.com/2008/04/29/integration-and-expertise-matter-more-for-saas/

another take on the same theme -

]]> By: Bunreasonable http://www.diversity.net.nz/is-there-a-saas-10-and-a-saas-20/2008/04/29/comment-page-1/#comment-3665 Bunreasonable Mon, 28 Apr 2008 21:52:49 +0000 http://diversity.net.nz/?p=1020#comment-3665 I think Bob's right and wrong here. To my mind there has always been a dichotomy in SaaS providers. They push the benefits but (sometimes) don't always subscribe to it. How many SaaS providers use hosted email and apps for instance? The same is true of PaaS for SaaS. I think this is a natural evolution, if Phil @ ZDnet is right is hard to argue with the economic benefits of doing this. I guess the counter to this is 'special sauce or customisation' (which again is similar to the end user). Would you gake CAD saas? problably not, how about that speciality billing app that you had wrote? Same is true for SaaS on PaaS. Some things are commodities (whole software sub - industries and functions like processing power, back up, etc). To that end, I do agree that the initial approach to saas (1.0) is being superceded or even disrupted by this newer approach. Benioff will hate it because it both validates and obliviates his business model! Time will tell I think Bob’s right and wrong here.

To my mind there has always been a dichotomy in SaaS providers. They push the benefits but (sometimes) don’t always subscribe to it. How many SaaS providers use hosted email and apps for instance?

The same is true of PaaS for SaaS. I think this is a natural evolution, if Phil @ ZDnet is right is hard to argue with the economic benefits of doing this.

I guess the counter to this is ‘special sauce or customisation’ (which again is similar to the end user). Would you gake CAD saas? problably not, how about that speciality billing app that you had wrote? Same is true for SaaS on PaaS. Some things are commodities (whole software sub – industries and functions like processing power, back up, etc).

To that end, I do agree that the initial approach to saas (1.0) is being superceded or even disrupted by this newer approach. Benioff will hate it because it both validates and obliviates his business model!

Time will tell

]]> By: Bob Krygowski http://www.diversity.net.nz/is-there-a-saas-10-and-a-saas-20/2008/04/29/comment-page-1/#comment-3663 Bob Krygowski Mon, 28 Apr 2008 20:54:26 +0000 http://diversity.net.nz/?p=1020#comment-3663 I've enjoyed reading your posts over the past few months, very interesting topics. My response to this question would be....no. My own belief of what we're seeing is a normal evolutionary cycle. I work with lots of ISVs with SaaS offerings, some provide their own hosting (which initially surprised me) and some go outside to "professional" hosting companies. The main reasons they give for their decision are cost and control. They feel as though they have more control over the experience they deliver to their customers as well as the overall cost of the service. I think they will evolve over time as well, especially as their customer base gets more sophisticated and pushes them to provide services they can't afford to deliver on their own. Until then, their customers are happy, and they control their costs and experience better than they would get if they handed the keys to a hoster. As far as the PaaS argument goes, I get the value proposition, which is nothing to sneeze at, but where I'm still not sold is on the sales value to the ISV for the commitment they make to the PaaS vendor. If I'm making a technical and product commitment to a platform, I'd like some help selling it, and thus far I haven't seen any PaaS vendor out there with a model that does that. Seems fair if I'm essentially locked into the platform. Just a wrinkle to the evolution argument. I’ve enjoyed reading your posts over the past few months, very interesting topics.

My response to this question would be….no. My own belief of what we’re seeing is a normal evolutionary cycle. I work with lots of ISVs with SaaS offerings, some provide their own hosting (which initially surprised me) and some go outside to “professional” hosting companies. The main reasons they give for their decision are cost and control. They feel as though they have more control over the experience they deliver to their customers as well as the overall cost of the service.

I think they will evolve over time as well, especially as their customer base gets more sophisticated and pushes them to provide services they can’t afford to deliver on their own. Until then, their customers are happy, and they control their costs and experience better than they would get if they handed the keys to a hoster.

As far as the PaaS argument goes, I get the value proposition, which is nothing to sneeze at, but where I’m still not sold is on the sales value to the ISV for the commitment they make to the PaaS vendor. If I’m making a technical and product commitment to a platform, I’d like some help selling it, and thus far I haven’t seen any PaaS vendor out there with a model that does that. Seems fair if I’m essentially locked into the platform.

Just a wrinkle to the evolution argument.

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