Business & Technology Nexus

Dave Stephens on technology and business trends

Interesting Linkback

with one comment

You all may have figured out I am a little wrapped up in something at the moment. But thought you might enjoy this SaaS rant, which I noticed on linkback to Procurement Central. Thanks for sharing your experiences Angus!

Salesforce.com, who Angus comments on, has had a particularly rocky road over the last year on system architecture, splitting instances up to lessen the impact of an outage and distribute load. In many ways, it’s a sign of success. Growing pains. Marc Benioff, Salesforce.com’s CEO and an ex-Oracle executive to boot, seems to be doing an excellent job running that business. Not every company is as socially aware either – check out their Foundation concept.

Angus also mentioned AppExchange, and that business idea is worth keeping tabs on. You can just picture Marc thinking “hey, maybe we can become the business operating system for SaaS…” It’s viral if not open, so who knows… I certainly would never call it “the eBay of business software” but overhyping something so people get the idea isn’t all bad. I hope they choose to break out their AppExchange revenues so we can see if there’s any “there there.” (Getrude Stein quote)

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Written by Dave Stephens

07/23/06 7:31 PM at 7:31 pm

Posted in Opinion

One Response

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  1. Dave, thanks for the link. As I noted that rant was inspired by your post, and Salesforce.com have certainly made steps in the right direction through the architecture changes they are making. The biggest annoyance for me day-to-day is GMail – the current lack of performance is amazing. However, some of that may be because I use the interface in ways they did not expect … for example I have a couple of hundred labels.

    At the end of the day SaaS providers need to be aware that performance is their Achilles heel, and the area they must spend big on – because it is quickly being acknowledged as a core feature, and not something that differentiates your product (except in a negative way).

    Incidentally, GigaOM mentions that VoIP is getting slower and losing quality as more bandwidth is used by VoIP, streaming video (e.g. YouTube) and other high need functions. Major bandwidth increases are needed everywhere, but especially in the connections to the typical end-user. SaaS providers are held hostage by the bandwidth available to their target market, solutions that rely upon mass uptake (e.g. GMail) must be built lightweight from the ground-up as in many places (e.g. most of Australia) the bandwidth available to end-users is still rather low.

    Angus McDonald

    07/25/06 5:27 PM at 5:27 pm


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