Wednesday, October 04, 2006

Software as a Service - The Old ASP is Dead - SaaS is not!

With the convergence of business users wanting to reach a larger population of their target markets Software as a Service (SaaS) may provide the vehicle to reach many new smaller customers and turn them into clients at a very small cost.

Many people see SaaS as the old ASP model reborn. This in fact not the case.
Many people see SaaS as just for independent software vendors to selling their solution to smaller end-users. This is partially the case.

What many people do not know is companies like Google, eBay, Amazon.com and others have given end-users, prospective customers and hard to reach markets around the world an opportunity to buy things that they cannot find at Barnes and Noble, Walmart and other brick and mortar stores (Geez the term brick and mortar - do we dare use it and tempt the fate of the .com implosion?).

This time the .com thing is different.

Now companies and individuals from around the world can leverage SaaS to reach a larger global population that would have been impossible to reach. Think eBay. eBay is selling stuff from China at pennies on the dollar. I bought an iPod FM car converter for $10. It works great! Shipping was $15 though. But now a Chinese person can sell from their apartment through eBay and reach the US market without much trouble except for - of course shipping. I bought more cool things from China that worked perfectly.

Never before has this been available - so think about how YOU might be able to use this.

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