I came across an interesting article on ZNet, something of a kill joy, a bubble burster. Going against the overwhelming rush of opinion to the opposite, as well as recent happenings which confirm that even the big guys think the same, Harry Debes, CEO, Lawson Software made a statement - "SaaS is a trend which will collapse in two years". Now, being a SaaS guy, I have to admit my sensibilities were a little hurt, but the courage of this guy has to be admitted. You can read the whole article here and see if the point of view works for you.

Rather than pontificate on the issue, I thought i would share some comments for the obvious torrential debate that followed in the comments section of the article. Some excerpts:-

“While it (downloaded software) might be good for Lawson's bottom line and investors, it has no benefit to the customer that's dealing with an ever web-reliant workforce. Sure, Lawson’s ERP niche is geared toward dinosaurish industries, but that’s not what SaaS is addressing.”

 “Mr Debes' comments are very valid when it comes to ERP…. It seems to have far greater value to smaller segments of the business information market.”

“Whether SaaS companies can generate superior returns over conventional models is perhaps questionable. However the absolute economic value that SaaS delivers to the end user is quantifiable and indisputable.”

“Just because Lawson hasn't figured out how to build a SaaS app that provides immediate return doesn't mean more agile companies, or even 2 guys in a garage, can't.”

“The problem with SaaS or on-demand cloud is with data security.”

“The fact that the company actually uses SalesForce, and finds value in it, is proof positive that the author is being hypocritical.”

“SaaS is the solution for small, new, and lean organizations, not necessarily large ones with established IT resources and infrastructures.”

My favorite:-

The SaaS market will 'collapse' in two years
[Harry Debes, CEO, Lawson]

I think there is a world market for maybe five computers.
[IBM Chairman Thomas Watson, 1943]

“There is no need for any individual to have a computer in their home.”
[Ken Olson, President of Digital Equipment Corp, in 1977]

“No one will need more than 637 kb of memory for a personal computer. 640K ought to be enough for anybody.”
[Bill Gates, founder of Microsoft, in 1981]

You get the drift!