Get Ready for SaaS 2.0

A new study reveals seven key trends as software-as-a-service evolves beyond its current focus on cost-effective software application delivery toward an integrated business service provisioning platform.

By Bill McNee, Saugatuck Technology

Software-as-a-Service (SaaS) is one of the most compelling and challenging IT and business innovations of the past two decades. Not surprisingly, SaaS is generating tremendous interest, heated debate, and a broad spectrum of opinion regarding its impact on users and vendors.

A new study from Saugatuck Technology, SaaS 2.0: Software-as-a-Service as Next-Gen Business Platform, shows that SaaS is at a fundamental ìtipping pointî between the current generation of software functionality delivered as a cost-effective service ñ or ìSaaS 1.0î - and the emerging generation of blended software, infrastructure, and business services arrayed across multiple usage and delivery platforms and business models or ìSaaS 2.0.î

The move to SaaS 2.0 will bring with it new business trends and key points of caution for users and vendors alike.

Dollars & Sense?

Software vendors report a mixed bag of earnings; plus IBM rounds out Rational, Lego goes open source and Microsoft & SAP sing a Duet… Read this and more news of the week in the SandHill.com weekly news summary. Visit SandHill.com every Friday when editors compile the most important software news and deliver readers a quick capsule of the week’s developments.

The Debut of ìThe Picky VCî

Matt Miller joins SandHill.com as a featured blogger with the debut of his blog, The Picky VC. This week, Matt shares his perspective on the recent first quarter venture capital totals and what they say about the health of software investing today.

Publish Your Perspectives!

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Need a New Job?

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Donít Miss McKinsey on Managing Services

Measuring the performance of a services business is more difficult than it is to monitor manufacturing results – but it isn’t impossible. The McKinsey Quarterly examines what it takes to effectively analyze services productivity and improve performance in this week’s article from the journal.

Poll: A Decent “Duet?”

What do you think of “Duet,” the new name for Project Mendocino from Microsoft and SAP?
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More Highlights from Software 2006!

Every week, new content from the Software 2006 conference appears at www.software2006.com. Online this week: video of key speakers, slides from popular presenters and the Software 2006 Industry report from McKinsey & Co. and Sand Hill Group. Visit each week for more new conference content.

More at SandHill.com:

Forrester says SAP leads Oracle in order management.
Read the most important enterprise software industry news of the week >>

InSync Software receives $7.5 million.
Monitor the latest software venture capital deals >>

Plaxo buys HipCal.
Size up last week's software M&A deals >>

Mental Images names Andre Wolper as CEO.
See who's made it to the top in our list of recent software executive appointments >>

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Parting Thought

“Life is pleasant. Death is peaceful. It's the transition that's troublesome."
– Isaac Asimov

Courtesy of Malcolm Kusher, The Kushner Group