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Resistance to SaaS is Futile Fatal

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Hey Microsoft! I'm disappointed with your all hype and no hope software as a service (SaaS) strategy. To give you credit, I recognize your adding the word 'live' to lots of software products and your near delivering a half hearted multi-tenant hosted CRM software product (Titan). I also recognize you've renamed the "software as a service" industry phrase to "software plus services" in order to appease your business partner channel; and to your credit the professional services element is a necessary one within the context of enterprise business software systems. However, now that I've finally seen a preview of the Dynamics Live CRM product I recognize why it's at the same price point as ACT! - because (in my opinion) it's fairly equivalent to ACT! in terms of functionality, feature sets and flexibility. Both systems are fine contact managers, however, woefully lack as enterprise customer relationship management (CRM) software applications.

Okay, Microsoft, my point of this post is not to rattle your cage but to encourage you to stop dragging your feet, legitimately embrace software as a service business applications and assume a leadership role. You own four impressive middle market ERP systems (Dynamics AX (Axapta), Dynamics NAV (Navision), Dynamics GP (Great Plains), Dynamics SL (Solomon)) - how about adapting at least one of them to the subscription-based, hosted, SaaS delivery model? Better yet, how about abandoning Project Green (which is another soon to be futile project) and creating a purpose built, web-based, thin-client ERP system and dominating the most significant growth market in the ERP software industry?

I recognize it's a fine balance to embrace a new technology that seemingly competes with your cash cow software licensing business and that the prospect of an annuity revenue stream, while attractive, isn't as attractive as all cash up front. Nonetheless, the SaaS industry is advancing with or without you so I'd encourage you to take advantage, bite the bullet, make your R&D investments and truly capitalize on this market movement.

Posted by: Jeffrey on 08.08.07
Posted in:
Microsoft
Comments (0) | jeffrey[at]erpblogger.com
Trackback | http://www.erpblogger.com/microsoft-saas.htm

 

 
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