5 responses

  1. Yobie Benjamin
    November 10, 2009

    Thanks for the shout out.

    Y

  2. Ben Kepes
    November 11, 2009

    No probs Yobie – thanks for the great post!

  3. Shawn
    November 11, 2009

    Makes sense though, right? SaaS scales instantaneously, can be up and running in minutes,

    But the biggest advantage of SaaS vs. IaaS is the cost. IaaS still buys the same hardware you’d need on-premise, but takes care of it for you. They still want to be profitable, so even if they’re partioning out the hardware (as opposed to dedicated), there’s still a nice mark-up. SaaS on the other hand, in its truest form, requires very little hardware investment and is inherently resilient, so duplicate hardware investments are not required, and overall hardware investment is kept to a minimum. Hence SaaS solutions can be offered at a much cheaper rate.

    And as for the 4:1/2:1 ratios, we’re undergoing a fundamental shift in how we use our computers and servers and what we use them for. The first “baby-step” from breaking the ability to hug your servers at night is to set up an internal cloud. This is a progression on the path toward true SaaS that is applicable for almost any business. In the coming years, I fully expect that ratio to shift as a great portion becomes accustomed and comfortable with SaaS.

    Shawn
    OnState Communications
    http://www.onstate.com

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