The Players of Software-as-a-Service Business Models and Finding the Best Value Propositions
P.J. Jakovljevic - April 2, 2005

More Examples of a Software As a Service Business Model

The growing success of Salesforce.com’s on-demand service for customer relationship management (CRM) software begs the question whether the software-as-a-service model is suitable for other applications. It seems that the model is amendable to other applications that are frequently outsourced. This includes HR/payroll; financial and procurement management; and business-to-consumer (B2C) e-commerce/product catalogs including dynamic pricing models, customer loyalty groups, targeted sales promotions, and other sophisticated sales tactics. Integration with other supply chain applications that do not necessarily require a large, internal team of sales support people may also find potential. The same can be said of businesses that rely on globalization, Web-based collaboration, distributed order management (DOM), and even the politically unpopular manufacturing outsourcing. These are all realities for many growing companies that keep installed fulfillment locations near various, global located manufacturing sites. Using these centers avoids the need to send inventory to a central location and instead enables drop-shipments as needed...