last week i talked about the importance of looking ahead to make sure we're ready for the next big thing. one of those big deals is likely to be software as a service (sas). success of companies like salesforce.com coupled with the investments the vc community is making in this space makes it something that indeed can be very, very big. the question is, what is the value proposition that keeps companies like ibm relevant to these software firms and how do we make money? after all, don't all of them build their solutions on open source? doesn't the value capture shift almost totally to the services delivered by the isv (only one server farm and one license of middleware needed to handle hundreds of customers!).
these are tough questions. we've long been committed to supporting our isv and rsi partners through strong technical support and go-to-market investments. value flows to our partners and back to ibm as they influence literally billions in hardware, software and services revenue. sas changes the business model. it changes the value capture.
idc predicts rapid growth in sas. it's off a very small base though and in three to four years will amount to less than ten percent of the total business applications market. none the less, i'd argue you can't be relevant to isvs if your focus is only on those who sell traditional software licenses. today our application enablement program hosts more than ninety isvs like datasul, bipt and internoded who deliver apps over the web on a subscription pricing model. many of these new companies use ibm middleware and servers (that's good for us). the value they receive is the strength of world-class products and new demand generation offerings that help drive leads (that's good for them). ibm's commitment and leadership in open standards resonates with these firms. our commitment to helping them succeed in the market resonates even more.
sas may be the next big thing. if it's where our customers are going, we will be there with our partners......
sas is the one that keeps me up at night
Buell 110000QTMG Tags:  software saas datasul service sas internoded ibm bipt 1 Comment 1,320 Visits