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Discussion on:
SaaS market will 'collapse' in two years

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RE: SaaS market will 'collapse' in two years
samlev 28th Aug 2008
Stop getting all up-in-arms about this.

SaaS is a great model for smaller companies. People are more likely to get involved BECAUSE they can get out at any time. It means that people will give the software a chance before they make their decision (can anyone say shareware?).

Small companies that market to individuals and other small companies have a lot to gain from going with an SaaS model. It means that they can get on their feet and making a profit sooner. It doesn't make sense, however, for large businesses that market to other large businesses. Seriously, do you think anyone would use Oracle if they said "We will serve the software, and you have to connect to our servers."? They wouldn't because SaaS just plain don't make sense in that situation.

Large companies LOVE to feel in control, and have the money to blow on a software. They have nothing to gain by buying the SaaS model. It means that they are not in control, and are actually depending on another company for an internal system. Not good.

What I took from this article is that, apart from a few small exceptions, companies on the SaaS model will not be able to turn a profit big enough to play with the big boys, and the big companies won't be trying to press out SaaS.

SaaS won't die out entirely (the internet didn't actually die with the .com crash), but it won't be as big as it's trying to be. It's more buzz from the people who brought you the non-event of Web 2.0, and it just simply can't support big business.

Companies will still produce SaaS, but it won't be their main revenue steam. That will still lie with more expensive, licensable software.
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