09.27.07
B2B as a Service - can it be done?
SaaS – Software as a Service is huge -A quick Google produced 1,620,000,000 hits. Even SAP is jumping on the SaaS bandwagon – although not large customers. (SAP Big business won’t be interested )
SAP is making the bet they can deliver ERP services using a SaaS model to small clients (100-500 employees.) What struck me most about this announcement is the competing view from Larry Ellison Larry Ellison Says No To SaaS – namely that he doesn’t see how he can create a business models using SaaS as a delivery
So what about a B2B Managed Service? Can the core elements of Data Transmission and Data Translation between trading partners be delivered via an SaaS model?
radkoj said,
September 27, 2007 at 1:21 pm
Odd, as a major SaaS player, NetSuite, is owned by Larry Ellison…
mhttp://www.flex888.com/2007/07/25/revealed-oracle-larry-ellison-owns-netsuite-a-saas-company.html
Mark Mixter said,
September 28, 2007 at 5:20 am
Surprised me too.
Larry’s comments were made on their Q1 earnings conference call, and are made in direct response to the strategy SAP is pursuing with their newly announced product A1S (aka BusinessByDesign) which they will deliver via SaaS.
Oracle’s strategy in apps, where they admit they are not #2 behind SAP is to sell more software to their exsiting customer base. SAP thinks they can reach the small market effectively using the efficiency and cost advantages of SaaS.
Looking forward to seeing how this play out. To me it looks Oracle is surrendering an entire market segment to SAP.