Cluster are more than the sum of their parts Software as a service is changing not only the way we deliver software, but also how we use it and how we use computers and the Internet The challenges include convincing the market software companies can deliver service. One of the big problems for incumbents is the different distribution model. It favours quality over incumbency. The incumbents have largely failed in the SaaS space because they cannot deal with the different distribution model.
John Gage: “The network is the computer” Sun Microsystems Sun failed because of proprietary hardware, software and expensive They also failed because the market wasn’t ready
The reasons for Sun’s failure are largely gone We now have widely accessible, relatively cheap and largely reliable Internet Most importantly we have a common, open operating platform – The web browser Having that common platform means all players are on a level playing field Social media and web2.0 are generating acceptance for SaaS applications The result is innovative and new ideas can thrive independently and don’t rely on distributors and partners. The global downturn is another opportunity. Unlike the Great Depression businesses need computers
Big scary incumbents who will spend lots of money and gets lots of coverage. Microsoft and Telsta’s T-Life suite Government and enterprises are reluctant to move from the incumbents. The lack of trust, consumers have been trained by the industry not to trust them through products not being ready for market, through shrink wrap agreements, through vendor lock in and, most importantly, a lack of service.
SaaS vendors are going to have to build up trust Trust of the product Trust the service will be available when they need it There is no vendor lock in They can back their data up locally Trust you can provide the service In today’s world of social media, if you lose trust you will lose it forever Trust your friends in the industry
The cluster allows you to pull together Your voice is bigger as part of a cluster More credible before the media, big business and government A great asset for start ups Leverage your strengths, help for your weaknesses The example of our fashion cluster You have great opportunities and the cluster will help you.