Posted by: superduperadmin on Apr 21, 2009
In the coming weeks we are spending a lot of time trying to see where our company can fit into the Platform as a Service model (PaaS). We have so much to offer our customers with a complete technology solution and complimentary consulting, support and training services. In addition to a great network of consultants, powerful hosting infrastructure and technical team we have a complete eCommerce/Social Networking CMS -to- Full featured CRM -to- Accounting and ERP for a full transaction life cycle management system. The Customer Relationship Business Management (CRBM) info@hand leverages powerful connections to the Joomla CMS and synchronization integrations with Inuit's QuickBooks and Microsoft's Outlook. Since Info@hand is based on the open source SugarCRM project and the Joomla CMS has over 4600 extensions the technology side of this platform is virtually unlimited with configuration, extensibility and scalability options.
We have found he hard part of all of this is communicating the vast power of such a technology platform "Integration" or "System Consolidation" combined with our expertise into a nice easy to understand message that folks can swallow in a single sound bite.
I think Platform-as-a-Service (PaaS) is getting close to a model we can go after as we shape CNP Integrations to meet the challenges in the ever changing and crowded marketplace.
Here is an article we found that explores this concept a little further;
The success of Software-as-a-Service (SaaS) has inspired a new generation of Platform-as-a-Service (PaaS) players to emerge, seeking to gain a higher ground in a rapidly evolving âcloud computing' environment.
Growing acceptance of adoption of SaaS alternatives to legacy on-premise software applications has created a new competitive battlefield among a combination of established software vendors and upstart SaaS providers.
Salesforce.com, a pioneer in the SaaS market, was among the first to recognize the opportunity to resell its internal SaaS development and delivery capabilities to third-party software developers and enterprise customers via its Force.com PaaS portfolio. Google Engine and a wide array of niche players have also followed suit. And, now the line of demarcation between PaaS and cloud computing vendors, such as Amazon's EC3, is quickly blurring.
In just the past few weeks, three more companies-Jaspersoft, ExpenseWatch.com, LongJump-have announced new platform strategies and solutions. These follow previous offerings from SaaS vendors like Bungee Labs and SpringCM, as well as established software and system vendors such as Oracle, Progress Software and IBM.
Microsoft also recognizes the opportunity and is trying to play catch up by promising its own development platform, Azure, in the next year or so.
Here's a quick list of the essential ingredients which a platform player has to have in place in order to win a meaningful share of the market,
- Easy to use, 'standards' oriented development code
- Reliable and secure development environment
- Automated and flexible procurement capabilities
- Name recognition and brand equity
- Customer base and channels to market
- Developer/Partner network
Put these assets together and the PaaS vendor can help third-party vendors and enterprise developers accelerate their SaaS development cycles, consolidate their go-to-market requirements, and reduce their overall costs. The PaaS vendor also gains a powerful competitive advantage by reinforcing the value of their core SaaS solutions by surrounding them with a wider assortment of third-party enhancements and complementary enterprise deployments.
However, if a platform player can't offer a combination of these attributes they have little hope of survival. The most recent example of this Darwinian reality is Coghead, which was an early entrant into the PaaS arena that failed to win sufficient market penetration to stay afloat. As a result, its intellectual property was recently acquired by SAP which is hoping that it can use these assets to accelerate its success in the SaaS market.
Given that a further shakeout of the PaaS market is inevitable, just as it is in the broader SaaS and cloud computing industry, it is essential for software vendors and enterprise developers to carefully consider which PaaS supplier to select to meet their needs.
Marketing 101 suggests that there are four P's that are critical to success-packaging, pricing, positioning and place. In the PaaS market, I believe there are five P's which will determine the survival and success of today's suppliers, and their customers.
- Primacy - Is the PaaS vendor's offering pivotal to their overall success?
- Proprietary - Is the PaaS vendor's development environment open or proprietary?
- Portability - Can you migrate your solution from one PaaS environment to another?
- Positioning - Does the PaaS vendor's sales and marketing efforts enhance your position in the market?
- Profitability - Does the PaaS vendor have a sustainable business model to ensure their long-term success?
Keeping these questions in mind will help you determine which PaaS vendor is best suited to satisfy your corporate objectives, whether you are a software vendor or enterprise developer.
Jeff Kaplan is Managing Director of THINKstrategies (an independent consulting firm focused on the business implications of the on-demand services movement). He is also the founder of the SaaS Showplace.