Tech trends and business ideas

All things that motivate entrepreneurs

Tuesday, September 18, 2007

"Make the high mountain bow its head; make the river yield its way."

If entries of LCCs like Southwest Airlines in the US and Air Deccan in India drove airfares down to the floor and shook up the smug industry majors from their cocky slumber, it was the entry of SaaS operators like Salesforce and Netsuite that did enterprise vendors like SAP, Oracle, Microsoft, IBM and HP in. As bloggers showered huge praises on SaaS vendors’ pricing model and beat up that adopted by enterprise gorillas post after post, they knew their bluff had been called. Good friend and fellow blogger Vinnie Mirchandani draws a parallel to EDLP model of Wal-Mart in that superb post.

Now I hear SAP is taking a page out of the playbooks of Salesforce and NetSuite, a company majority-owned by Oracle Chief Executive Larry Ellison that filed in July to go public. The news is that SAP will unveil on Wednesday a line of business management programs to be delivered over the Web. Microsoft and other large software companies are also starting to make a similar shift.

Pricing and delivery innovation combined with power of blogosphere – deadly combo to bring down monsters what years of customer harangue couldn’t…?

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