The Death of Big Software? (Cont'd)
That's fine; in fact, I expected it. But then came news today that software behemoths like Oracle, SAP and Hewlett Packard are ramping up their software as a service (SaaS) offerings. Yes, plenty of software giants have gotten into the mix, but other bigs have resisted. Why? As WSJ's Ben Worthen (former honcho of now-defunct BusinessTech blog) and Justin Scheck explain: "Technology giants such as Oracle have avoided providing online software because it is less profitable than traditional software, and sales could cannibalize those of existing products. It also requires software vendors to absorb expenses, including hardware purchases, that previously have been borne by customers." The writers accurately state that CIOs are turning to Web-based software as they continue their cost-cutting efforts. Just as WSJ quotes Oracle chief Larry Ellison snubbing SaaS as late as last September, plenty of CIOs scoffed at the idea as it gained steam. Both changed their mind. Still, some industry veterans say it's just about the recession. So tell us: if you're making the move to SaaS, why? What are your primary motivations?
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Comments (1)
I think someone forgot what real business is. For all of the media talk about MS, Facebook and cloud computing, Real Business is about money. That's Payroll, Accounts Receivable, Account Payable, General Ledger, Inventory, Purchase Orders, and more. The day a company wants all of this information in the hands of others is not coming. If you are in business why on earth would you trust any of these important functions to another company? I have yet to work with a single company with over $500 million in yearly sales that would trust someone else with their information. Let me know when any fortune 500 company farms out Payroll or Accounts receivable or inventory control to another company.
Posted by Henry Robert | July 5, 2011 1:06 PM