Google (GOOG) and Salesforce.com (CRM) are the poster children for Software as a Service [SaaS]. And Microsoft (MSFT) is imploding under the weight of its big, monolithic applications.
That's the popular story in the trade press. However, it's not the full story. Sure, Windows Vista missed the mark -- badly. But If you think Microsoft won't have a strong presence in the SaaS market, you're gravely mistaken.
On April 15, Ingram Micro's (IM) Seismic team will announce a major SaaS initiative focused on three hosted Microsft applications: Exchange Server, SharePoint and Dynamics.
Ingram Micro isn't alone. Dozens -- perhaps hundreds -- of Microsoft partners are lining up to offer hosted versions of those three Microsoft applications.
Microsoft announced its SaaS push -- known as Microsoft Online Services -- on March 3. That announcement has triggered a feeding frenzy in the technology market. Some Microsoft partners, such as mindSHIFT, are making SaaS-related acquisitions. Other Microsoft partners -- such as Azaleos -- are moving up the food chain by introducing security services for hosted Microsoft applications.
And now Ingram Micro, the $35 billion distributor, is leaping into the market to help Microsoft partners set up hosted applications. SaaS may upset Microsoft's development, sales and marketing strategies. And SaaS rivals may steal some of Microsoft's traditional client-server buisness. But SaaS won't kill Microsoft.
On the contrary, all of the little wounds Microsoft is suffering right now at the hands of Google and Salesforce.com could wind up making Microsoft -- and its SaaS partners -- even stronger.
