Microsoft’s Software as Service… soooo 90’s

Microsoft’s announcement today of “going to the internet” is not innovation, nor is it news. It serves a purpose though- most things do. It points to the simple fact that the Internet cannot be ignored, as the foundation of people’s work, communication, entertainment and lifestyle.

Marc Beinoff and others have certainly been the innovators in this space. We talked about ASP’s of the past, present and future on this blog in early September. Please see: http://nachi.typepad.com/nachiblog/2005/09/return_of_the_a.html
http://nachi.typepad.com/nachiblog/2005/09/return_of_the_a_1.html

This is also instructive in observing the development of technology market. A “market” consists of “customers” who will pay a certain price for a product or service. But a market doesn’t become a market until there are, a bunch of “customers-willing-to pay” (critical mass). In this case customers are willing to pay for using software that is based on the Internet and not on their PC’s or servers- and they have been willing for more than 5 years.

The word “Hosted” as a product descriptor will disappear. There is no place for it on the Internet. The Internet by definition is “hosted”. Where have you been?

What we want to see is a better Internet, the next iteration in this fantastic evolution. Hosted Microsoft Office? Pshhhhh… So 90’s…

More on this later… (I am writing as fast as I can!)

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