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Director, OpenShift Strategy at Red Hat. Founder of Rishidot Research, a research community focused on services world. His focus is on Platform Services, Infrastructure and the role of Open Source in the services era. Krish has been writing @ CloudAve from its inception and had also been part of GigaOm Pro Analyst Group. The opinions expressed here are his own and are neither representative of his employer, Red Hat, nor CloudAve, nor its sponsors.

2 responses to “No, Commoditization Of Software By SaaS Doesn't Lead to Death By Communism”

  1. Riku

    Lower prices and new business models such as SaaS increase productivity, they don’t kill industries.

    It’s a popularist view that might be true for one company that a cheaper and better model for providing software is detrimental.

    I would also argue that SaaS companies have an opportunity to have HIGHER margins than traditional sofware vendors. Why?

    1. No need to provide support and patches to legacy versions.
    2. Overall more focus on one product that is the same everywhere.

    I also wrote a blogpost about the economics and benefits of SaaS:

    http://abookthatchanges.blogspot.com/2009/07/chrome-os-and-glance-of-economics.html

  2. route_b

    Add in SOA, Open Standards and Virtualization to your mix and you really do have a datacenter computing revolution on your hands – one that rhymes with shroud…