We’ve fallen into a lengthy pattern of rainy weather in the Boston area. Even though it’s starting to feel like we’re living in Seattle rather than Beantown, I don’t mind wet Sunday’s because they allow me to catch up on work and reading, and enjoy a guilt-free afternoon staying indoors watching football (the Red Sox season being over).

If you’re looking for some interesting reading that you might have missed during the past week, here are a few good articles:

The French Get Lost in the Clouds Over a New Term in the Internet Age. This 10/14/09 Wall Street Journal article discusses the humorous way in which the French government is attempting to rename “cloud computing” because of its double-entendre meanings in the French language. It not only highlights the language barriers to promoting an idea internationally, it also speaks to the fundamental ambiguities of … Read More »

A series of service outages over the past few days has brought into focus all the worst fears about the ‘cloud’ computing and Software-as-a-Service (SaaS) movement. These incidents have also demonstrated how data center experience doesn’t necessarily translate into cloud computing excellence.

The most damaging outage affected T-Mobile users who lost their contact information in a SideKick server snafu by a Microsoft subsidiary, amazingly called “Danger”.

A severe data center outage grounded Air New Zealand last week. This time, IBM proved to be the culprit responsible for mishandling one of the airline carrier’s mainframe systems as part of a traditional-style outsourcing arrangement.

The cloud computing world wasn’t spared when one of the most promising SaaS vendors also had a system failure last week. Unlike the IBM and Microsoft outages, Workday was able to fully restore its customers’ records and salvage its customers’ satisfaction for important two reasons:

It had the … Read More »

I’ve been suggesting for years that PC vendors could be great channel partners for Software-as-a-Service (SaaS) vendors, and Dell now has an opportunity to prove me right.

Today, Dell and saleforce.com announced that Dell will offer salesforce.com’s SaaS solutions to its small- and mid-size business (SMB) customers via its website.

This is a natural combination. Dell has been a prominent customer of salesforce.com’s on-demand CRM solutions. Salesforce.com uses Dell’s computers in its data centers. This week, the companies’ CEOs will be on stage together at Oracle’s Open World conference.

Selling software to its customers isn’t new for Dell. It has been offering Microsoft Office, Symantec Anti-Virus and other applications for a while. Adding salesforce.com’s on-demand solutions enables Dell to position itself as a fuller, ‘one-stop shop’ for SMBs.

This gives salesforce.com a strong new channel to market and builds on Dell’s core competency as a direct sales company, … Read More »

I was astonished to learn that salesforce.com’s founder and CEO, Marc Benioff, is speaking at next week’s Oracle Open World customer/partner conference.

Although Benioff is an alumnus of Oracle and Oracle’s founder/chairman/CEO Larry Ellison was an initial investor in salesforce.com, there has been no love lost between them publicly because salesforce.com was conceived to compete against Oracle’s Siebel division long before it became a part of Oracle.

Benioff has spent the past decade ridiculing the inefficiencies of on-premise customer relationship management (CRM) software and other legacy enterprise applications, along with traditional hosting models associated with Oracle. Ellison has returned the fire with his own tirades about the impossible economics of the Software-as-a-Service (SaaS) model. And, Ellison’s lieutenants in the Siebel On-Demand division have made increasingly aggressive efforts to undercut the success of salesforce.com over the past year.

Yet, folks I know who are a part of the Oracle inner-circle … Read More »

THINKstrategies announced today that SchoolDude.com has been named the latest winner of the Best of SaaS Showplace (BoSS) Awards program, which is aimed at promoting the measurable business benefits being delivered by today’s Software-as-a-Service (SaaS) solutions.

The BoSS Awards program was announced in January 2009 as the latest initiative by THINKstrategies to bring attention to SaaS and cloud computing companies which are producing tangible business benefits for specific user organizations. These benefits include increased sales, lower costs, higher customer satisfaction, faster operations, and greater profitability.

SchoolDude.com provides a suite of on-demand operations management solutions that help school districts, private schools, and universities save money and time by managing their IT, facilities, and business operations more efficiently. This includes functions such as preventive maintenance, facility work order management, inventory management, IT incident and IT asset management, community use scheduling, and utility use tracking … Read More »

I had the privilege of visiting Copenhagen, Denmark, for the first time this past week to give keynote presentations at ComputerWorld’s Top 100 Award ceremony and the first Hosting Day Conference held in the city. I also met with an assortment of local cloud computing entrepreneurs and a variety of established players pursuing Software-as-a-Service (SaaS) opportunities in the Nordic region.

I was invited to participate in these events by Anders Trolle-Schultz, the founder of SaaS-it Consult Ltd. and organizer of the Hosting Day conference. I knew little about Anders or his consulting business when I sent him an email in June to congratulate him on publishing a terrific column in the Sandhill Group newsletter, entitled “Software as a Service: It’s About the Business Model, Stupid!”

I was pleasantly surprised to discover that Anders was a fan of my writings as well, and … Read More »

Dell’s acquisition of Perot Systems clearly demonstrates that Dell is in the midst of abandoning its historic advantage as the most efficient direct marketing company in the tech industry, in favor of following the increasingly failed outsourcing models of its bigger hardware rivals.

By buying Perot Systems, Dell is following in the footsteps of HP’s acquisition of EDS in an attempt to match the IT outsourcing (ITO) and services capabilities of IBM.

The only problem is that an increasing number of large-scale enterprises have become disillusioned with tradition ITO because these asset transfer deals have generally failed to achieve their business objectives. Even traditional IT consulting engagements frustrate many IT and business decision-makers because they tend to be too long and expensive.

Blending a labor-intensive business, like Perot Systems, with a product-centric company, like Dell, is also a formula for trouble. These are two very different … Read More »

In the ongoing tug-of-war between on-premise and on-demand vendors, much was made of Steve Lucas’ jump from the SaaS unit of SAP’s Business Objects to Salesforce.com to lead its new Force.com Platform-as-a-Service (PaaS) initiative a little over a year ago.

With far less fanfare, Lucas returned to SAP last month as its new SVP of Business User Sales for North America. Since Steve is a friend, and SAP and Salesforce.com are also clients, I won’t share any confidential information or insight. However, his move does raise a series of interesting questions about Salesforce.com’s Force.com initiative and SAP’s plans.

Given Salesforce.com’s rapid growth despite the macro-economic slowdown and the major push the company is giving Force.com, it is surprising to see Steve return to SAP which is still struggling to define its Software-as-a-Service (SaaS)/cloud computing strategies and solutions.

While SAP’s struggles have been well documented, … Read More »

For everyone in the U.S., Labor Day weekend represents the spiritual end of the summer. It is also a time when many of us sit back and take stock of our lives and the world around us as we prepare to re-enter the regular work routine.

The first thing to be said about the current state of our world is there is nothing routine about it. Obviously, the economy has had a major impact on the business environment and everyone’s psyches as well. But, even if we are fortunate enough to see an uptick in the financial climate as we approach the last quarter of the calendar year, I believe the rapid migration to cloud-based services will continue to accelerate and fundamentally transform the competitive landscape of almost every industry, including the public sector.

Although I remain a vehement proponent of the cloud computing and … Read More »

One of the most controversial aspects of the rapidly evolving cloud computing market among industry insiders is the idea of ‘private clouds’.

Purists insist that cloud computing is all about exchanging legacy, on-premise, inhouse IT resources and functions with online, shared resources via the Internet (i.e., the ‘cloud’).

While this is the origin of the cloud computing concept, a variety of forces have conspired to create an alternative approach referred to as ‘private clouds’.

These include valid customer concerns regarding privacy, security, reliability and performance; along with proprietary concerns among various hardware and software vendors seeking to usurp some of the spotlight away from cloud upstarts like Amazon, Google and Salesforce.com.

In addition to the sourcing and marketing forces fueling the idea of private clouds, there are various debates regarding the technical implementation of private clouds which have raised questions about the viability of this idea.

Just as it … Read More »