Software-as-a-Service: Give 'em what they want

We’ve come a long way since the early days of, when Marc Benioff was blazing a trail with his “No Software” campaign.  Back then, the big question was whether or not corporate IT departments would ever accept on-demand software, as opposed to the traditional approach of on-premise hosting.

Here’s what Sun had to say:

At an event Sun hosted recently, one room was filled with CTOs from some of the world’s largest on-line companies; the room next door was filled with CIOs — from a broad spectrum of companies from China, Japan, Europe and North America. As Mr. Schwartz spoke with attendees from each room, he noticed that not a single company in the CTO room paid for software. They were interested in open source or software-as-a-service (SaaS) alternatives. In contrast, not a single company in the CIO room allowed free software without a commercial support contract. Not one.

There are two clear implications for ISVs. First, the time to move to the SaaS business model is yesterday. Your customers are asking for it; your competitors are offering it; it gives you a way to grow subscription revenue and move your service offering to the SMB market at the same time. Second, the cost of downtime is an overarching concern for customers. If you can deliver your software as a service, on demand, with extremely high levels of availability, you can win over both the CIO and the CTO.

That’s music to our ears.  Here at PBwiki, we have one simple business principle: give ’em what they want.  We’re convinced that offering a reliable, easy-to-use service is the best way to serve our users and customers.  That’s why we’re the #1 SaaS wiki for business collaboration.

How has SaaS made a difference in your organization?

Published by Chris Yeh

Chris has been building Internet businesses since 1995. He has been a founder, founding employee, or seed investor in almost a dozen startups, including PBworks, and advises a wide array of startups ranging from network equipment makers to vertical search engines. He liked his investment in PBworks so much, he decided to join the company. Chris earned two degrees from Stanford University and an MBA from Harvard Business School.

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