deaverb

Why Microsoft (Yes, Microsoft) Could Dominate Software-as-a-Service

The author has identified the trend of old line high priced software companies moving over to the B2B space to escape pricing pressure in the consumer space, a la Clayton Christiansen's The Innovator's Dilemma, of simpler and cheaper winning (e.g., iTunes, Netflix, Google--the champion, and Simply with near free software--$1.99 to $3.99, doing an office suite, checkwriting program--both challenging MSN office on one side and Intuit Quicken on the other).

With the consumer 70% of the economy and growing, and B2B 30% and declining, and more businesses "buying" like consumers (e.g., using Quill.com not office supply companies; etickets--ehotels--cre... card payments--etc) the "real" B2B numbers are lower (Simply uses Quill.com, Expedia, Cheaptickets, hotel.com, etickets, credit card payments for business purchases--not just T & E, retail customer payments via credit card, our own openoffice suite, Simply Money checking for businesses, google.docs--instead of a fancy B2B program, etc. and so on).

Nature abhors a vacuum. As Christiansen says, "Those that come in low, move up." Canon, Toyota did this--and MSN and INTU in its youth did so too. As Robert Townsend said in Up The Organization, "If they did then, what they do now, they wouldn't have gotten to now." B2B is the siren song for MSN. Google must be throwing a very big party!