Daily Archives: August 30, 2008

Richard Waters

The email has been flowing fast and lurid since I wrote a column earlier this week suggesting that the the software-as-a-service (Saas) business was unlikely ever to be as profitable as traditional software (in fact, one venture capitalist with a lot of experience in the field offered to send me to “reeducation camp.” Can’t wait.)

To recap briefly: I argued that subscription businesses where customers can switch suppliers easily tend to suffer from heavy churn and falling prices. It may be called “software”, but the economics of Saas have nothing to do with the old enterprise software business. Read more