In his fascinating book, Predictably Irrational, Dan Ariely describes the lure of the zero priced item. Dan provides examples from the real life: in his experiments, people selected Lindt truffles for 30 cents over Hershey kisses for 3 cents, but when given a choice, preferred a now free Hershey kiss over 27 cents truffle. The conclusion from this experiment and many other is clear: we love free.
No other place as the Silicon Valley has ever produced more free stuff: we have a free search, free reviews, free price comparison and free web conferencing. Almost everything is offered for free, in an attempt to win us over and break our old paying habits. In a rational world, we would have carefully considered the benefits of each option and select the best for us, no matter if it is free or not. In Ariely’s predictably irrational world, we will always go for the free option. Continue reading “Commiting to Zero”
SaaS
Is SaaS For Me? (Part 2)
Last week I wrote the first part of the Is SaaS for me post. It talked about two important distinctions of the SaaS model: It changes the power play between the customer and the vendor and assures that the vendors work for the customers every day. This part will cover some more distinctions like simplicity, security and maintenance. Continue reading “Is SaaS For Me? (Part 2)”
Is SaaS for me? (Part One)
People write a lot about SaaS and focus on the famous “no-software” phrase that Marc Benioff coined. What many people fail to discuss is that the SaaS model, even if one ignores the products themselves, brings real value to customers and puts them in the driver’s seat for the first time. So for once, let’s not talk about technology or delivery mechanisms, but rather focus on the change in the most basic rules of the game that the SaaS revolution is creating, with or without a planning hand from the SaaS companies side. Most of this change is affecting my favorite segment, the Small and medium businesses (SMBs), so let’s talk about how SaaS impacts the way SMBs treat IT. Continue reading “Is SaaS for me? (Part One)”
Seven Things That SaaS Vendors Need To Do In Order To Increase Their Desirability For SMBs
There is no doubt that SaaS and on demand are here to stay: if five years ago on demand solutions looked like an Internet version of the mainframe days (strong central server, no logic in the terminal, bad user interface… sound familiar?), the SaaS applications of today look appealing and offer a good alternative to the on premise world.
Continuing with the “seven things about Saas” Theme, which started with Seven reasons why SaaS is not main street in SMB and continued with Seven reasons why SaaS will be a great success, I would like to turn to the vendors now and offer some do’s and don’ts for the industry… Continue reading “Seven Things That SaaS Vendors Need To Do In Order To Increase Their Desirability For SMBs”
RaaS—Reading as a Service and the New Amazon Kindle
“There is a new SaaS, Something as a Service every month.” This is how I mused a month ago when writing The next SaaS post. Newsweek has the story about the new Amazon reader, Kindle. The device (that looks anything but kindling) will be sold for $399, and will act like an iPod for your books. Kindle will offer more than iPod in one sense: it carries its “iTunes” with it, allowing owners to purchase and download books whenever a wireless network is in sight.
This is new and innovative in the books world but not really new when we think of what Apple did with iTune and iPod. The big difference is that Amazon created a new entry barrier for the avid book reader—buying the Kindle. Different? Yes. For the last 150 years or so, listening to music meant buying a device to play the music. From CD players, Walkmans or MP3 players: we first bought the device, and then bought the content. The music played on our device. Continue reading “RaaS—Reading as a Service and the New Amazon Kindle”
Which Problem Is Facebook Solving?
In a typical Silicon Valley speed, Facebook coverage moved from being all glamorous to more realistic coverage that focuses on the challenges ahead. It looks as if the company has matured in a matter of weeks and now needs to deal with the real world problems and not only with the hype.Seth Godin compared Facebook with good old Hotmail. He foresees similar monetization challenges for Facebook, since they never developed a permission asset and a real relationship with their customers. (It is amazing to see that the question of how to monetize a free service is still open, more than 10 years after Hotmail was launched.)
Alas, I am not going to discuss monetization today. I think Facebook has another big challenge for long-term sustainability (and they have $15B to sustain…): it does not solve any real problem for its customer base. Continue reading “Which Problem Is Facebook Solving?”
The next SaaS- Something as a Service
There is a new SaaS—“Something as a Service” every month. First came the term SaaS—Software as a Service. Marc Benioff coined PaaS—Platform as a Service. Amazon came along with HaaS– hardware as a Service, and Zoli brought the latest one: CaaS—Car as a Service, in response to Shai Agassi’s launch of better place project.
If we learn from history, almost every service started as a product one owned and maintained, which turned into a service over time. Adam and Eve were the first known couple, but shortly thereafter, the first prostitute emerged, offering the real first SaaS: “Spouse as a Service.”
Banks are no more than fancy language for VaaS: Vaults as a Service. With urbanization, people started moving from villages to big cities, only to meet the DaaS concept: “Dwelling as a Service,” a huge industry (house and apartment rentals) until these very days. Continue reading “The next SaaS- Something as a Service”
Seven Reasons Why SaaS Would Be a Great Success
I am a great believer in SaaS (Software as a service) as a future leading delivery mechanism for small and medium businesses (SMBs). Although SaaS penetration into this space is slow, there are many reasons for SaaS to prevail. It may take a while, and it will require a leap of faith from the customers and hard work from the vendor side, but it will happen. 0.9 probability as my Gartner friends taught me to say…Here are the seven reasons why SaaS is better than the current delivery mechanisms (namely software on a CD). Continue reading “Seven Reasons Why SaaS Would Be a Great Success”
Seven reasons why SaaS is not main street in SMB
It was the week of Web 2.0, the annual conference that celebrates the new new new web. Tracking the news from the conference, it was clear that the new web still mainly targets consumers and individuals, and did not make any significant headway into the small- and mid-size business space (SMB). A quick scan of the tech news this week (all thanks to good old techcrunch) reveals that the industry is focused on photo editing, Internet TV, and web 2.0 mashups for your car. Even applications that are more business-oriented, like InterviewUp, are focused on the individuals (interviewees) and not on the interviewers. Continue reading “Seven reasons why SaaS is not main street in SMB”
Gadi Shamia 
