Original Web Article: Salesforce.com’s Service-as-a-Service
Review Summary:
The small to medium enterprise (SME) market always seems to be unable to get the software functionality that will make them competitive and lower their costs. Yet, there are lots of software vendors with ‘good enough’ solutions that don’t have the sales forces or support infrastructures needed to reach the SMEs on a more local basis. With Netbooks, Software as a Service (SAAS) and other innovations, this is about to change in a very big way.
Review/Analysis:
The small to medium enterprise (SME) owner would love to make use of products from SAP (DE:SAP) or Oracle (NASDAQ:ORCL). But, the costs of entry and maintenance are prohibitive. Products from SAP and others are great for the huge enterprise. They are too complex to meet the simpler needs of the SME. That is changing fast.
Cloud computing is one of those buzzwords that has been around for a long time. But, finally, with great virtualization and data depuplication technologies, the concept of a fully utilized data center is becoming a reality. No more idle servers or wasted storage.
All of the cloud computing options (Infrastructure as a Service (IAAS), Platform as a Service (PAAS), Software as a Service (SAAS) and Application as a Service (AaaS)) make it possible for software companies of all sizes to offer their products and services on an international basis with very low deployment costs while delivering low cost of entry and centralized support to the customer base.
Salesforce.com (NYSE:CRM) and their expansion of their Service Cloud offerings will expand the dynamic nature of centralized, cloud based applications and allow access from virtually any device and medium.
The shift to the cloud will allow for companies to spend less CAPEX on devices and infrastructure and more on applicaiton functionality. Netbooks will simplify utilization of cloud based services while improving security and supportability from centralized IT organizations.
Success for smaller software companies will depend on delivering a ‘good enough’ product that can meet the needs of the SME. Minimizing cost of entry and shortening the return on investment cycle will be critical.
President, Innovate the Future, Inc.
SPEAK WITH THE AUTHOR:
David Croslin consults on this and many other topics through Gerson Lehrman Group. Please click here to contact David Croslin.