The Death of Big Software? (Cont'd)
Comments were mixed on my recent post on whether or not flashy new enterprise technologies will displace the big software systems so many CIOs have wrestled with for years.
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?