The large software vendors have traditionally struggled with developing effective distribution channels aimed at Small and Medium-size enterprises. The advent of subscription and pay-as-you go services delivered over the web will change this.
But the big players need to watch out- the barriers to entry for SaaS services are much lower, and many new hungry and agile players are entering the market.
SME’s are much more likely to adopt simpler ‘horizontal’ or generic’ services like sales force automation than more sophisticated applications, so much of enterprise software is unlikely to be impacted for quite a long time
Comment by Michelle Wong — March 27, 2008 @ 5:20 pm