“SaaS and the future of Software“. Jos White, the co-founder MessageLabs back in 2000, wrote a piece recently on his website (http://www.joswhite.com) with this title.
It looks at what has happened and is happening in the software industry where virtually everyone now builds cloud-based software applications. This is how puts it:
“The world of enterprise software IS now the world of SaaS. It still might be a smaller market overall but the whole software industry is gravitating in this direction. If you’re not already in it you want to be. If you are starting a new enterprise software company today it is almost inconceivable that it wouldn’t be SaaS.” (http://www.joswhite.com/post/102e0ke/saastr-the-future-of-software)
What I find interesting is the business model these companies, new ones and established ones, use to grow their businesses. I’ve written about this before, The SaaS Industry , and still wonder how long the model can work until there are massive failures when rounds of funding dry up before the companies are profitable?