SaaS / Software-as-a-Service

5 07 2007

Service with a smile - from Russia

SaaS / Software-as-a-Service

When I buy a plane ticket, I buy a ride, not the whole airplane. This is an economic axiom, and, at business school, I learned this concept as a First Cause. We are thankful that, yes, the analogy breaks down: Software-as-a-Service is most certainly not beset by the problem of unrecoverable revenue like seats on an airplane after it takes off. Quite the contrary.

And to my pleasure I learn I can still use software without ever having to pirate buy it.

Allow me to indulge my need to fill in some knowledge gaps that have opened since my ’02 B-school graduation date. (That’s equivalent to 25 years ago in tech-years.)


Succinctly, customers pay – not for owning the software itself – but for using it. Source
This is where commodification takes place. The intrinsic value of the software (regardless of its function) becomes its use, rather than in its ownership. An esoteric concept no longer, because in our post-post-modern society we finally understand that using (not storing), sharing (not hording), mentoring (not training), supporting (not rewarding) is the real business of business.

Dilbert The idea of Software-as-a-Service ostensibly lies in its perception by the PTB that SaaS is cheap and easy. Not to say it isn’t cheap and easy. It is for the buyer. This attitude sticks Management firmly back in the 20th Century – the Age of Modernity where dollars were different from information and work was different from the workers.
feather I’m adding to this idea by suggesting that software as a service is becoming an equation that is greater than the sum of its parts. Proof of this is that SaaS applications usually deliver a one-to-many model with recurring billing. The 21st Century is proving to be more tribal and traditional, where connectivity and time contain value, and virtural innovations are actual folklife.


1 – SAN MATEO, Calif. – April 18, 2007 – SuccessFactors, the global leader in on-demand performance and talent management solutions, today announced that Wachovia Bank has over 85,000 employees actively utilizing the SuccessFactors Performance and Talent Management Suite, making it one of if not the largest enterprise Software-as-a-Service (SaaS) deployments ever.

“Our mission is to significantly improve the way companies measure and motivate people across the globe, giving them instant gratification in people management,” said SuccessFactors’ CEO Lars Dalgaard. Article

However, in reference to the news shown above, the question is begged, “Can the Fortune 500 Achieve Efficiency through Intra-enterprise SaaS?” So asks SaaSBlogs. The opinion is yes, citing it is also well understood that the provider generates certain efficiencies via the centralization of the technical burden associated with the application.

2 – Chicopee, MA (PRWEB) June 28, 2007 – Apatar to Officially Launch World’s First Open Source Software as a Service (SaaS) Data Integration Company

Apatar, Inc., today announced Apatar Enterprise Data Mashups™, the world’s first open source on-demand data integration software tools and services at the Red Herring East Conference, being held June 26-28, 2007, in Boston, MA.

Apatar is the leading provider of open source software tools for the data integration market.

I note that this innovation toward open source confirms my belief in the traditions of the tribe. As long as one user is without access (a condition corrected by open source software), the connections are left incomplete, a status virtually intolerable (pun intended!)

3 – Wednesday, 04 July 2007 – OpSource™, SaaS delivery experts, today announced a partnership with MarketShare, a specialist in SaaS software pricing, to better serve the needs of new and existing software vendors transitioning to the software as a service (SaaS) business model.

Jim Geisman Jim Geisman, principal and founder, MarketShare said, “In addition to facing the challenges of pricing a SaaS solution, some of our prospects and customers underestimate what it takes to deliver a SaaS application. OpSource’s complete, end-to-end SaaS delivery environment and value-added services, such as billing, coupled with its success-based business model, provides tremendous value to SaaS vendors and their customers.”

I hear, when I read what Mr. Geisman said, is that value is derived when the software is used/evolves/becomes a useable, helpful service for the end user.


NowSourcingWe know that the world is changing. Outsourcing has become an overused buzzword, coupled with the backlash that may come along with it. Our team of experts here at NowSourcing come from a variety of backgrounds, experience, and left-brain / right-brain specialties. We are different, as we analyze your company’s needs from top to bottom. We aren’t just a coding house – we look to find any systemic issues with the way you do business today.




4 responses

6 07 2007 » SaaS: Software-as-a-Service

[…] Get the whole story… […]

9 07 2007

nice site

10 07 2007

Thanks very much! Come again!

10 07 2007

Thanks for the trackback!

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