Last week I had a conversation with Chuck Schaeffer about the growing number of organizations using cloud services. He quoted an estimate from Gartner that the current market for cloud services is $46.4 billion and will grow to an estimate $150.1 billion by 2013. Do software vendors in this market have SaaS applications? What is the difference between SaaS, hosted and ASP environments? Should I pick a multi tenant or single tenant environment?
Chuck answered these questions quite nicely by saying “Despite the accelerated market adoption for cloud computing solutions, or perhaps because of it, many cloud-based vendors are attempting to alter or advance the definitions of cloud computing and Software as a Service (SaaS) to more closely align with their particular solutions. Sales pitches that include terms such as ‘multi-tenant’ versus ‘isolated tenancy’ – or – ‘SaaS’ versus ‘Software + Services’ are just a few of the red herring arguments which ultimately cause more confusion than value for IT evaluators and buyers. To separate claims and hype from substance and benefits, avoid abstract technical declarations and instead retain focus in aligning your organizations core objectives and business processes with the value proposition tenants derived from SaaS and the cloud.”