Comment Articles

Software as a service: More than another buzzword?

Mary Jo Foley AnchorDesk

Published: 13 Oct 2000 08:57 BST

I confess that I've used the software-as-a-service moniker abundantly in news stories for at least a year -- especially when searching in vain for a quick and easy way to explain the hopelessly unexplainable Microsoft.Net in fewer than 10 words. I almost thought I had a handle on what software as a service meant. But now, I'm not quite so sure.

Does software as a service imply:

A. Your software application is hosted and requires some kind of ASP or MSP as the middleman delivering your access to it?

B. Your software application, which is hosted, is accessible at some kind of guaranteed level of service?

C. Your software application is available in hosted form only -- i.e., not on CD-ROM -- and is accessible via a browser, in a kind of self-service model?

D. Your software application is available via a subscription model, meaning you will pay to use it on a daily/weekly/monthly or possibly a per-access basis?

E. Or all of the above?

Answer: Got me.

Here are just a few of the recent claims I've heard about software as a service.

Marc Benioff, chairman of Salesforce.com: "We are the largest software-as-a-service ISV (independent software vendor), since we have over 1,000 paying customers per month" accessing its sales-force-automation software.

Larry Ellison, CEO of Oracle Corp.: "Software is destined to become a service. In 1995, I said the PC is a ridiculous device. Applications belong on big servers on the Internet." Oracle's dabbling in this area, too, via its OracleSalesOnline initiative (aimed squarely at former Oracle executive Benioff's company).

Microsoft talks up everything, from add-ons to future versions of Office, to Hosted Exchange 2000, to next-generation MSN services, as examples of software as a service.

Internet storage companies like Driveway.com are hawking online storage in the name of software as a service. I predict we might hear Sun Microsystems' StarOffice folks make some software-as-a-service noise of their own later this week, when they officially lob into open source the StarOffice suite and its piece parts.

What's your take? Is software as a service more than just marketing hype? Is there a better phrase or explanation for how the packaged software market is morphing? Somehow, SAAS (software as a service) lacks sex appeal.

Here's your chance to coin a new and improved acronym. Who knows -- it might just catch on. Add your take to the TalkBacks below and let me know what you think.

To have your say online click on TalkBack and go to the ZDNet forums.