SaaS and the Shifting Software Business Model

Collaboration, ERP / CRM, Personal Productivity, SaaS May 28th, 2008

Barely two years ago we debated whether little-known Zoho was worth paying attention to. The majority view was that their Office applications were weak contenders that would never challenge the Microsoft suite’s position. I think I was in the minority stating that I really did not need more than 10-20% of Word or Excel’s functionality, but online-anywhere access and collaboration made the switch worthwhile.

Today Robert Scoble reports he is seeing online applications wherever he turns:

Today I’d say the skill set is shifting once again. This time to something like Zoho Writer or Google’s Docs. Because if you visit Fast Company’s offices in New York, for instance, they want to work with you on your copy in live time. Fast Fast Fast is the word of the day. It’s in our title, after all. Now some people still use Word, but last time I was there one of the editors told me he was moving everything over to Google’s Docs because it let him work with his authors much more effectively.

These are no longer yesterday’s wannabe applications. Zoho Sheet recently added Macro and Pivot Table support , going way beyond the average user’s needs (and certainly exceeding my spreadsheet skills, which are stuck somewhere at the Lotus 1-2-3 level). Zoho Writer today added an equation editor and LaTex support. Heck, I don’t even know latex from silicone, what is it doing in my editor? smile_wink
As I found out it’s important for Zoho’s academic and student users, once again, going way beyond an average user’s needs. (the other update today is mass import from Google Docs: nice, special delivery for Dennis, but I still would like to see a list of all my online docs, be it Zoho or Google, open them, edit them, and save to whichever format (and storage) I want to.)

Online applications have arrived, they’ve become feature-rich, powerful, and are the way software will be consumed in the future. They also change the business landscape.

Software margins choked by the cloud? - asks Matt Assay at CNet, pointing out a shift in Microsoft’s tone about cloud computing, recognizing that in the future they will host apps for a majority of their customers, and that their margins will seriously decline:

There’s not a chance in Hades that Microsoft will be able to charge more for its cloud-based offerings–not when its competitors are using the cloud to pummel its desktop and server-based offerings. This is something that Microsoft (and everyone else) is simply going to have to get used to. The go-go days of outrageous software margins are over. Done.

Matt cites Nick Carr who in turn recently discussed

…the different economics of providing software as a Web service and the aggressive pricing strategies of cloud pioneers like Google, Zoho, and Amazon.

This is fellow Enterprise Irregular Larry Dignan’s key take-away from the Bill & Steve show, too:

Microsoft CEO Steve Ballmer acknowledged the fact that a lot of computing is happening in the browser and not in applications. He also said that the future of software will have “a much more balanced computational model” and that Microsoft will have to compromise.

Of course it isn’t just Office. The obvious business application is CRM, where Salesforce.com pioneered the concept and delivered the first On-demand product. But now a funny thing is happening: the pioneer is increasingly being replaced by more inexpensive competitors, including my Client, Zoho. Yes, SaaS disrupts the traditional software market, but there’s another equally important trend happening: the commoditization of software.

Commoditization is beneficial to customers, but a death-spiral to (most) vendors. Except for the few that drive commoditization. Zoho makes no secret of doing exactly that.

Zemanta Pixie

Tags: , , , , , , , , , , , , , , ,

Web Forms Gain Popularity

Collaboration, SaaS, Startups February 7th, 2008

Web forms are increasingly popular, as they provide an easy way to solicit user input, manage a database in the background, and display data in a controlled form. Typical uses are contact forms (this blog has one), surveys, signup-sheets.   Wufoo is perhaps the most popular standalone form builder, but as popular as they are, Google’s entry to the space will likely bring more visibility to Web form use cases. 

I set up a very rudimentary web form to demonstrate their use, but I am cheating: I took the data from Google Operating System and populated my database - sorry, Ionut, I don’t get anywhere close to your huge reader base.smile_wink   Please fill out the form below.

Although the form captures the time of entry, I am not displaying it below, to demonstrate that once can control the re-use of data after user entry.

You can manipulate the above data, filter it, sort it by clicking on the column headers, search the contents…etc. 

Oh… is this more than you’ve seen on the other Google forms?  And they’ve told you the lists were not embeddable?  Sorry .. I’m cheating: I’ve re-created Ionut’s  form in Zoho Creator. smile_tongue  (Disclaimer: I am an Advisor to Zoho - but I am making a point by doing this.)

 

Different people will always prefer different tools.  I don’t have any statistics, but I would assume the number of users for database-like tools (MS Access, Dabble DB, Zoho Creator & DB) is by an order of magnitude less than the number of spreadsheet users.  A lot of basic spreadsheet users don’t perform calculations, don’t use pivot tables - they just  create tables to track lists. (See my earlier rant on why JotSpot’s tracker is not a real spreadsheet).  For their sake it’s nice to be able to have simple form support inside a spreadsheet, which is what they can now get from Google.

Several reviewers of the new Google Forms were missing field verification, calculated numeric fields…etc. These features and more are supported in Zoho Creator, which in fact allows you to build mini-apps by dropping script elements, without actually coding.  Those who want more database manipulation can use Zoho DB. These are powerful applications, but which one to use when can be confusing to less technically inclined users (like yours truly).  Hence simple forms in a spreadsheet are a good idea.   But let me dream a little - here’s how I’d like to see web-based collaboration some day:

It won’t be about formats and applications - it will be about free-flowing thoughts and the data encapsulating them.  Of course there will be differences in application capabilities, but it’s entirely likely that what you can manipulate in your database application, I will access using a spreadsheet. Likewise, I may write something in a wiki, and you want to edit it in an online word processor.  It’s not a dream, we’re heading that way.  For example Zoho’s wiki and Writer apps share a basically similar editor, Zoho DB introduced pivot tables which will show up in Sheet in the near future.  I am impatient, would like to see this sharing happen faster, but have to accept the realities of how the leading Web companies work: individual products first, integration later.  But we’ll get there… to the vision of format-less web-collaboration.

Oh, and until then, Welcome Creator Mini Google Forms.smile_teeth

Related posts: Rev2.org, Download Squad, Digital Trends, Sunny Talks Tech, Webware.com, Compiler, Search Engine Roundtable, Googlified, Search Engine Journal, CenterNetworks, Google Operating System, TechCrunch, Google Blogoscoped, SEO and Tech Daily, Lifehacker, Gear Diary and Techmamas

Tags: , , , , , , , , , , , , , , , , , , ,

Microsoft Decides You Don’t Need Your Old Data

Personal Productivity, SaaS January 3rd, 2008

Do you think old, archive data on your computers is safe? Think again. Or just re-define safe: so safe that you can’t access it yourself.

In it’s infinite wisdom Microsoft decided certain old documents, including those created by their own Word, Excel and PowerPoint may pose a security risk, so they decided to block them in Service Pack 3 to Microsoft Office 2003. SP3 came out in December September (thanks for the correction) so you may or may not have it yet. Here’s the “fun” part:

  • There is no clear definition of what’s blocked: the easy one is PowerPoint, where anything before 97 is dead, but as for Word or Excel (let alone other, previously compatible programs), you have to rely on this cryptic description by MS.
  • There is no warning whatsoever at the time of installing SP3
  • Even if you know what’s coming, there’s no way to easily locate and convert what is about to become inaccessible on your computer. Disaster may hit months or years away, when you need to access an archive file, but can’t.

Now, before you shrug it off, remember, this isn’t simply abandoning users still running pre-historic versions of software; we’re talking about data files here. You may run the latest release of all applications and still have no reason to touch old documents. After all, that’s what an archive is all about - you *know* your documents are there and will be accessible, should the need arise at any time in the future.

Back in the 80’s and 90’s paperless office was a popular phrase but remained largely a dream, since a lot of information still originated in paper form. The balance has largely shifted since then: the few things I still receive in paper format either end in the waste-basket, or I quickly scan them trusting that with cheap storage and powerful search I will always be able to pull up anything I need. I am finally living in a largely paperless world. But Microsoft just violated that trust, the very foundation of going paperless. Of course I shouldn’t be entirely surprised, this coming from the company which previously decided that the safest PC is a dead PC.

Solution? Microsoft offers one, in this article: tinker with your Registry, an admittedly dangerous, and definitely not user-friendly operation. I prefer Wired’s alternative:

Naturally, there’s an alternative which is somewhat easier (and free): just grab a copy of OpenOffice which can handle the older file formats. Once you’ve got them open, now might be a good time to convert them to ODF documents lest Office 2017 decide to again disable support for older file formats.

And of course I wouldn’t be mesmile_wink if I didn’t point out that this, and many other headaches simply disappear when you ditch the desktop and move online. Web applications typically don’t have major new versions, they just get continually updated (e.g. Zoho updates all their applications every few weeks). When that’s not the case, like when Zoho Show 2.0 was released recently and it required updating the user documents, the service provider takes care of it. They work for you - you don’t care about program versions anymore, just have access to your data. Anywhere, anytime.

Related posts: CNet, Ars Technica, Compiler , An Antic Disposition, AppScout, Security Watch, Download Squad, Blackfriars’ Marketing, Feld Thoughts. The winning title comes from The J-Walk Blog: Office 2003 Downgraded With Service Pack 3.

Update: Phil Wainewright brings up an entirely new aspect of this issue: Microsoft breaks the perpetual licence covenant.

Tags: , , , , , , , , ,