Excerpt from:  Software and Technology for the SME (Small and Medium Enterprise)
.
June 27, 2006

Putting The Myths To Bed

Business Week Article Takes on 8 Myths About Software as a Service (SaaS)

I have been meaning to bring this article in Business Week to the attention of our readers. Software as a Service Myths is an excellent about some of the misconceptions surrounding on-demand software, like NetSuite. Many of those who are considering SaaS should really take a gander at the article. It will answer a lot of the nagging little questions about SaaS that you and your team have. For example, I know that a lot of companies think that SaaS is an untested way to deliver and access software. But as the article points out


The oldest and biggest SaaS purveyor? ADP (ADP) -- the world's largest payroll application outfit -- has been in business for nearly 60 years, generated $8.5 billion in revenues last year, and served about 590,000 clients worldwide.


I have pointed out the same thing in an article on the SightLines' website, The Software as a Service Story. In fact, I used to work for ADP and though the main focus was payroll they still had a few customers who used the General Ledger and A/P services they had once offered.

The author also asks, in Myth #6, whether SaaS will fade over time. He answers by quoting Bill Gates:


In response to these numbers and other industry trends, Microsoft Chairman Bill Gates stated in an internal memo that became public last fall: "This coming 'services wave' will be very disruptive....Services designed to scale to tens or hundreds of millions will dramatically change the nature and cost of solutions deliverable to enterprises or small businesses."


In a related story last week it was reported that Microsoft, Yahoo and Google are all building vast new structures in the Columbia River Valley (reliable electricity) to house huge server farms. Their bets are saying "This is the future of computing." Are you listening?


Syndication OptionsRSS (Rich Site Summary) Feed Atom Feed OPML (Outline Processor Language) Feed MYST-ML (MyST Markup Language) Content Feed MS-Office Smart Tag Subscription