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Just Blogging -
Software as a Service
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Browsing around, I've discovered this recently published e-book from Joel York (Chaotic Flow Blog).
In the SaaS Economics 101 - Competitive Advantage (PDF), I think Joel hit the mark with the right view of the SaaS field.
SaaS is all about a new business model to provide a service. SaaS is not about technology, technology is only an encompassing enabler. It happens to be related with Software at the Internet.
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As Joel stated in the e-book, "Much has been written about how software-as-a-service can lower a customer’s total cost of ownership (TCO) by eliminating the high up-front investment and ongoing maintenance costs of on-premise software and hardware infrastructure. Most SaaS vendors deliver on this promise with a bargain basement subscription price, putting their faith in the miracle of multi-tenant architecture, and working to build enough volume to make the theory a reality. Meanwhile, they bleed cash."
As the e-book describes in detail, to apply a sound business model, the provided service has to be planned to achieve the right balance between "Life Time Customer Value" and "Total Cost of Service".
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An excelent e-book, it really helps to analyze the different SaaS business models value.
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Last Updated ( Saturday, 15 August 2009 00:00 )
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