Is Apple Getting SaaSy?

Anyone who follows the Software-as-a-Service (SaaS) market knows that every major SaaS player, starting with Salesforce.com (CRM), uses the success of consumer-oriented, on-line services as the model for its business-to-business solutions.

SaaS vendors, executives and ‘experts’ (myself included) point to the way these web-based services created an enjoyable, effective and economical user experience as the centerpiece of their success.

The most prominent example of this approach has been Apple iTunes.

Ironically, Apple (AAPL) has never taken advantage of its prominence and positioned itself as a SaaS or cloud-computing player. It appears that this may be changing. At this past week’s MacWorld, Apple unveiled a new, web-based version of its iWork productivity suite. Just as Microsoft’s (MSFT) Software-Plus-Services strategy is an acknowledgement of the growing interest and adoption of web-based apps, so is Apple’s move down the same path.

Apple is also moving in this direction to build on the momentum it has gained penetrating the corporate environment. At the desktop and laptop levels, Apple capitalized on customer discontentment with Microsoft’s move to Vista to win a greater share of the corporate PC market. The iPhone has also been a big hit among corporate customers.

So, Apple is in a far better position to succeed in its SaaS/cloud-computing initiative than Microsoft. Apple has the online procurement and delivery mechanisms to facilitate the new service, as well as the end-user devices (desktops, MacBooks and iPhones). It is known for its innovations, and will immediately attract a broad base of curious and committed fans to test the beta version of the new on-demand service.

Apple can also exploit the growing ‘consumerism’ within the corporate IT environment, which has seen end-users bring their personal systems and services into the workplace to get their jobs done. Apple can also leverage a vast assortment of developers, channel partners and strategic relationships to distribute and enhance its SaaS solutions. So, the ‘poster child’ for the SaaS movement appears to be making its move to claim a share of the rapidly growing SaaS/cloud-computing market.

Disclosure: None

Comments

[stefn:]

A larger yet pocketable iPod Touch can be the next big cloud event. A Mac that we keep with us anywhere, anytime. Just like a wallet.

... The front jeans pocket is the new rear jeans pocket.

The “MacTROU” (for The Rest of Us) can be untethered, like the Kindle providing web access via EVDO. But a hundred times better than the Kindle, this Mac can connect to ALL our files online.

... It's all about selling solutions, not just gizmos.

Apple can charge whatever it wants for the MacTROU, for the connectivity, and for a subscription to MobileMe. And it can collect for purchases of software, books, audio, video, whatever, which can then reside online, always available to the MacTROU user. All of these revenues can flow directly to Apple.

... Money is the ultimate content stream.

Jan 11 10:34 AM

[brewer:]

Apple is doing far better than Microsoft on ALL fronts, it's just that Wall Street is too stupid to really figure this out.

Jan 11 10:05 PM

[jmmx:]

This article makes some good points. It is, however, a little ahead of the game. If I understood the keynote properly, it appears that Apple has released a beta version NOT of iWork itself, rather only a collaboration service allowing users to view and annotate on iWork docs.

I do agree with the author that this is the future. As a set of browser based "cloud" apps, this will allow Apple to further infiltrate the Windows environment.

One thing though, they will need to transform Pages into more of a word processor and less of a layout program. This is what most businesses need.

Overall - Very tricky indeed. And we were wondering why they wanted to make Safari for Windows. They need to assure that there is a browser that will run their apps and not change the rules to undercut them. That is the Apple way - one step at a time.

Jan 12 01:00 AM

[Zoltan L. K...:]

Apple has already experimented with cloud-computing through its .mac service, now expanded into MobileMe. For Apple, software is the centerpiece of its digital lifestyle strategy and less a stand alone business. So it only makes limited sense to compare its software offerings with pure-play software vendors. At Apple it is contributing to the companys success via integrating its products, its offerings. Now this is true for macs, iPods, iPhones, and software like iTunes.

Jan 12 01:17 AM

[wallyton:]

I have always like Apple's approach to leveraging the internet. Call it SaaS if you must. I guess it can be "The Cloud". But I love the beauty of the iPhone Apps architecture. Rich, elegant GUI on the device, powered by a connection to the internet in the back to run the app or store the data. This is SO superior to an experience of sitting in a browser based app, waiting for the screen to refresh. I will take that ANY day over some AJAXy looking app in a browser. I remain hopeful that Apple will deliver a Tablet-Like device that will further and expand this experience. Whether that is a bigger iTouch or something new and different and beautiful.

Save us from THE CLOUD Steve.

Jan 12 10:01 AM

[mollytjm:]

businesses that have switched to Macs are saving a lot of money by having to have less tech support onboard. i love the iPhone...even reading on it is a joy and i've downloaded several books...so even at that smaller platform, i think it can give Kindle a run for it's money, once the consumer gets the news. about the beta thing...when Apple does a beta, it doesn't stay beta long...they actually fix things pretty fast, unlike some other company i could mention.

Jan 12 12:08 PM

[mikesan:]

discontment wtf is that??

Jan 12 11:14 PM