Is SaaS a bubble? Will it pop?
- TAGS:SaaS bubble, SaaS market
- IT TOPICS:Cloud Computing
Given that we've suffered through the Internet bubble, the real estate bubble and the credit bubble, it's not surprising that anything growing looks like a bubble market that will eventually collapse.
But software as a service?
One blogger drew that conclusion while attending SaaS Summit 2009 in San Francisco last week. His evidence? Well, Microsoft was a sponsor of the event, which he thought ominous, and he did not seem to understand what all the SaaS companies did, so, therefore, they had no purpose. Oh, and Google had an outage the other day, proving SaaS unreliable. Hence, he concluded, the end of SaaS is nigh.
Needless to say, the blogger is out to lunch. SaaS is gathering momentum, not slowing down. If it is a bubble, it hasn't come close to its bursting stage. SaaS companies are growing revenues, making profits and adding customers, all of which undermine the assertion that the bubble is about to pop.
I suppose the blogger was trying to be contrarian. Certainly, there's room for skepticism about just how rosy the SaaS market is today. But by only looking at the thorns you can mislead others about what is a strikingly impressive bloom that looks like will last for a long, long time.
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