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« Economist: Jeane Kirkpatrick | Main | Economist: Small Cities/Towns, Revival »

December 25, 2006

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Sharad Sharma

There is no doubt that SaaS is becoming part of the mainstream. Salesforce.com hit $500m annual revenue run-rate in the 2nd quarter of 2006. On the other end of the spectrum, as this Economist article points out, consumer-oriented software is going business class and is displacing the old work horses in large enterprises.

Ultimately it will not be about replacing horse carriages by cars (although that will happen), but about making a Model T affordable to a whole new class of buyers. I believe that the focus in SaaS will gradually move away from selling to large and medium enterprises to selling to networks of micro-firms. It will be about market expansion, not displacement. Growth, innovation and value creation will happen at this new edge.

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