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August 23, 2006

Software as a Service: Evolving from a Software Shop to a Service Provider

By: Ahmar Abbas
Led by the success of companies like Salesforce.com, the buzz around Software as a Service (SaaS) has been building over the past few years. More recently Microsoft, SAP, Oracle and other large software firms have started putting their weight – and their marketing effort behind the concept.

The SaaS delivery model is rising from the rubble of the failure of the application service provider model of the mid and late nineties. While ASP’s took traditional shrinkwraped software and provided it as a hosted offering to customers, SaaS providers are developing software specifically for web-based delivery from centrally hosted location.

Independent Software Vendors (ISV) that venture into the SaaS world have taken on two distinct sets of responsibilities. First, like a traditional software company, a SaaS vendor is responsible for continually delivering innovative and relevant software products. Second, the SaaS vendor is now also responsible for developing, managing and supporting the infrastructure that is used to provide the software to the end user, under a regime of demanding service levels agreements and associated penalties.

Consider the burden that ISVs take on as they assume the role of a Service Provider:
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Link | 23 August 06 @ 11:18 | Discuss ( 1 comments ) | More from:  | Views ( 92  Views)


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