IBM provides the platform for SAP’s new entry into hosted CRM. €œAll the big players are now in the water,†says Rick McGee, vice president of SaaS strategy for IBM Global Services, noting that Microsoft, Oracle, and SAP are staking their claims.
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And among the major software vendors, Microsoft is hardly the only one exploring SaaS.
Employease, which launched in 1996, now delivers HR management through the browser to more than 1,000 customers managing more than 700,000 employee records. , founded in 1999 and still the standard bearer of SaaS business applications, is enjoying dramatic growth, reaching 399,000 subscribers at the end of its most recent fiscal quarter. Nor is it restricted to the consumers, developers, and very small businesses that Microsoft is targeting with its customizable Windows Live page and Office Live free Web site and collaboration service. As Gates observed in that same message, however, SaaS (software as a service) isn’t new.
Ringing in Gates’ ears must have been the roar of Google - and the Web 2.0 hordes, whose XML-based mash-ups of sites are transforming the Web experience. “The next sea change is upon us,†he writes. In a now legendary 1995 memo, bill Gates raised the alarm that Microsoft was woefully unprepared for what he termed the “Internet Tidal Wave.†Fast forward 10 years to last October, and Gates blasts out another high-priority e-mail, this time warning of a coming “services wave†of applications available instantly over the Internet.
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