Monday, May 26, 2008

Why Open Source Java will Win SaaS Platform Wars

McKinsey & Company published a report predicting the market size for Software as a Service (SaaS) will exceed $37B market over the next 5 years. In particular, the report described the need for Independent Software Vendors to SaaS-enable their products using special-purpose SaaS development tools. Matt Asay also wrote recently that the growth of the top BPO services providers companies & 60 software companies is driven by SaaS.

McKinsey claims that traditional J2EE and .NET platforms are poorly suited to building SaaS applications. According to McKinsey, this opens up a $3B market for Platform as a Service (PaaS) products from new entrants like WaveMaker, Coghead and SalesForce. From the article:

Although SaaS development platforms like SalesForce and Coghead have gotten a lot of attention, this market has so far been remarkably closed and proprietary. The Platform as a Service leader, SalesForce, has both a draconian hosting policy (host your apps and data anywhere, as long as it’s with us!) but also a proprietary language (who needs Java when you’ve got Apex!?).

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McKinsey claims that traditional J2EE and .NET platforms are poorly suited to building SaaS applications.

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D. said...

Your comment about Sales force requiring hosting of the data is interesting. Is that not the point of SaaS? Our company has built an AppExchange app that runs on Sales force that integrates seamlessly with our product (ContractPal). I confess the APEX language and integration was not simple, but the end result was what one would expect from an integration between two SaaS providers. In our case, Sales Force does what they do best, we do what we do best, and the end result is software in the cloud with a zero client footprint and the redundancy, scalability, built in backup, etc that you would expect from SaaS.

Viola said...

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