Posted by: lrrp | February 17, 2009

The Real True Value of Software as a Service (SaaS)

While working on a presentation on communities, social computing and how important the role of Software as a Service is I realized that the current view on SaaS is far to limited.

If you read the media everybody talks about Software as a Service and the current economic situation might accelerate the adoption of SaaS. In the discussions mainly focus around the economics, reduction of cost of ownership, CapEx versus OpEx, etc. I’m not an accountant and look different towards the whole evolution of Cloud computing and Software as a Service. It’s all about scale!

When we are doing business we collaborate and communicate with other people, both in our own organization as well as in other organizations. Infrastructures like phone, email and IM have increased the communication capabilities between people in different organization. IT infrastructures have optimized business processes within organizations, but a limited number of business processes are automated and optimized between organizations. Up until today the cost of integrating business processes between different IT systems is very high, and only economically available for larger organizations dealing with huge number of transactions. This is where Cloud computing, Software as a Service or whatever you want to call it comes in, it’s creating scale, it’s driving the commoditization of IT. This will make new ways to communicate, collaborate and integration of business processes available for a much larger group of companies. Companies adopting Software as a Service solutions can now share the same infrastructure, enabling then to add value in their communication and collaboration with other companies.

Cloud computing, Software as a Service, etc.. is all about adding value, not about new delivery models!

(Passion for Innovation)


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