Services 2.0 – Bringing SaaS and Web 2.0 to the Customer

February 5, 2007 Appirio

Check out the below analysis where Appirio describes the impact of On-Demand on the Services industry. It compares how application providers like are disrupting on-premise applications (like those from SAP and Oracle), and the similar impact on Services firms ‘hooked’ on on-premise application services multiples.
Excerpt from: “Services 2.0” – A New World for System Integrators. Specialty Solution Providers & Social Networks Will Dramatically Alter the SI Landscape, Gearing Up the Enterprise for Web 2.0 and SaaS 2.0
[Read Full Analysis]

Services 1.0

Services 2.0

Dominated by Accenture, IBM, Deliotte, Bearing Point and Cap Gemini
Led by newly emerging specialty solution providers such as Astadia,Appirio, Bluewolf, Okere and Theikos
Overly broad focus, with partnerships with hundreds of competing on-premise vendors
Sharp focus on accelerating on-demand in the enterprise  – taking a strong position  that advocates for market-changing solutions
Multi-year waterfall-style mega projects
3-9 month iterative micro projects
$1 in software licenses = $10- $15 in services
$1 of subscription fees = $2-$4 in services
“Tell me” approach.  Project teams that fill binders with screen shots, process diagrams, etc. which are read once, then collect dust
“Show me solutions”.  Productized SaaS prototypes and working applications launched in weeks
Overall opportunity shrinking as companies rely less on SAP, Oracle, and other on-premise vendors
Opportunities growing rapidly, derived from specialty business, technology and process services to extend and integrate SaaS solutions
Complex and costly hardware, infrastructure and integration software
No hardware or infrastructure required, integration via open APIs and real-time mashups

[Read Full Analysis]

Previous Article
Day 1 at the Credit Suisse Disruptive Technology Conference and the Keynote

Investor’s version of “Show-and-Tell” Offers Interesting Insights for CIOs Marc Benioff, CEO of salesforce....

Next Article
Why the Incubator Should Excite You – An Early Peek from the Initial Occupant
Why the Incubator Should Excite You – An Early Peek from the Initial Occupant

Recently Appirio added an office in’s Incubator in San Mateo and became one of its anchor te...