Redefine Your Business, Redefine An Industry
Google’s new Nexus One Android phone has created a lot of buzz as a ‘game-changer’ in the smart-phone business. Many believe this device, and Google’s new business model which supports it, could redefine the phone industry.
It is always exciting to witness a company challenge the status quo in an established industry by offering a bold new value-proposition to customers.
Yet, most companies have responded to today’s economic malaise and extended downturn with a risk-adverse, reflective stance which has manifested itself in more aggressive cost-cutting strategies rather than more innovations.
I can’t blame them for shying away from the innovation tact. The cynic in me also recoils from the business pub jargon which would have us believe that any company can adopt a bold strategy to recreate themselves in this type of environment.
However, there is plenty to be said for taking this risk and attempting to … Read More »
Salesforce.com Becomes First Billion Dollar SaaS Company
Salesforce.com unveiled its year-end 2008 financial results earlier this week and, as the company had predicted, it passed the billion dollar mark, reporting total revenues of $1.077 billion, an increase of 44%over the 2007.
This milestone event, combined with the company’s rising earnings per share growth, are clear indications of the overall strength of the Software-as-a-Service (SaaS) market despite the challenges of today’s tough economy.
In fact, Marc Benioff, the company’s Chairman and CEO, is quoted in the company’s press release as saying, “At a time when capital is precious, big-ticket software purchases just don’t make sense.”
I am also a firm believer that Salesforce.com’s continued growth, and that of the overall SaaS industry, will be fueled by today’s economic crisis. IT and business decision-makers are increasingly recognizing not only the economic advantages of SaaS, but also the fact that SaaS represents a more effective method of supporting a more dispersed workforce and leveraging the latest innovations in … Read More »
Is Apple Getting SaaSy?
Anyone who follows the Software-as-a-Service (SaaS) market knows that every major SaaS player, starting with Salesforce.com, uses the success of consumer-oriented, on-line services as the model for their business-to-business solutions.
SaaS vendors, executives and ‘experts’ (myself included) point to the way these web-based services created an enjoyable, effective and economical user experience as the centerpiece of their success.
The most prominent example of this approach has been Apple iTunes.
Ironically, Apple has never taken advantage of its prominence and positioned itself as a SaaS or cloud computing player.
It appears that this may be changing. At this past week’s MacWorld, Apple unveiled a new, web-based version of its iWork productivity suite. Just as Microsoft’s Software-Plus-Services strategy is an acknowledgement of the growing interest and adoption of web-based apps, so is Apple’s move down the same path.
Apple is also moving in this direction to build on … Read More »