ASPnews Home





ASP Directory


About Us

Search ASPnews:
Internet Lists
Internet News
Internet Resources
Linux/Open Source
Personal Technology
Small Business
Windows Technology
xSP Resources
Corporate Info
Tech Jobs
E-mail Offers
Be a Commerce Partner
Cheap Plane Tickets
Digital Camera Review
Register Domain Name
Memory Flash Cards
Online Education
Remote Access
Advertising Trucks
Online Degrees
Best Digital Camera
Cheap Web Hosting
Digital Camera Review

ASPnews Focus
Top News:
» SOAs So Close, Yet So Far

» Why SaaS Is Making a Comeback

» Join the Discussion:'s industry forums

» More ASP News

TOP 50
Top 20 Providers
 & Top 30 Enablers
Free Newsletter!

ASPnews Shortcuts
Week's Top News

ASP News at

Industry Events

Discussion Forums

Industry Basics

Site Guide

Whitepaper: Transforming “The Business of IT.” Learn how IBM’s Component Business Model for the Business of IT can help CIOs uncover hidden productivity, savings and value in their infrastructure.


SaaS Players Seek to Shape SaaS 2.0
By Michael Hickins

May 9, 2006

Continued from Page 1

SaaS in the Enterprise

And it’s value that more enterprise-level companies are recognizing.

Jeff Kaplan, principal analyst with THINKStrategies, based in Boston, says that SaaS vendors are winning contracts with “large brand-name companies.”

“SaaS has sunk its roots into the very fabric of how companies operate,” he says.

The reason, he adds, is that in many cases, the functionality of on-demand software “exceeds legacy applications.”

But gaining sales among enterprises with legacy on-premise systems won’t be easy.

Mark Hilderbrand, general partner at Onset Ventures, cautions that SaaS vendors will displace existing on-premise vendors, but only over time.

Moreover, he says, they would have to deliver new types of services, “not simply offer the same thing as on-premise only better.”

Haykin of Outlook Ventures believes the path to enterprise-level sales will come through the department level.

“A departmental decision maker can sign off on the budget without having to get approvals from multiple divisions or departments,” he says.

But SaaS vendors are also finding an appetite for more mission-critical applications.

“Critical but non-core functions are ripe for SaaS,” agrees Ritter.

So Just How Far Will SaaS Go?

According to several observers, “traditional” SaaS vendors face an imminent threat from vendors of open source solutions, such as SugarCRM.

“That’s an exciting and very disruptive model that could be quite threatening to the software as a service vendors,” says Hilderbrand of Onset Ventures.

The open source model allows customers to download most of the software for free. Open source vendors such as SugarCRM earn revenues from professional support and customized enterprise editions.

SugarCRM provides its solution on-demand, but will also install it on premise, or even sell customers a server with its solution pre-installed.

John Roberts, CEO of SugarCRM, openly disparages the model of providing SaaS.

“The reality is they want to lock you into a proprietary code base to force you to pay their prices for their products,” he told

He added that software should be provided however customers want it.

“We treat on-demand as a deployment option,” he said. “Placing restrictions is not going to withstand the test of time.”

Adapted from

Go to page: Prev  1  2  

Email this Article
View Printable Version
Back to Trends


Featured Links
Learn the secrets of the popular search engines!
Free Web Hosting Buyer's Guide -- Click Here!
Enhance your Web site with the Dynamic HTML HierMenus Code

JupiterWeb networks:

Search JupiterWeb:

Jupitermedia Corporation has three divisions:
Jupiterimages, JupiterWeb and JupiterResearch

Copyright 2005 Jupitermedia Corporation All Rights Reserved.
Legal Notices, Licensing, Reprints, & Permissions, Privacy Policy.

Jupitermedia Corporate Info | Newsletters | Tech Jobs | Shopping | E-mail Offers

Give us your Feedback