Cookies help us display personalized product recommendations and ensure you have great shopping experience.

By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    business using business intelligence
    How to Use a Competitive Intelligence Dashboard to Turn Market Data Into Smarter Marketing Decisions 
    9 Min Read
    unusual trading activity
    Signal Or Noise? A Decision Tree For Evaluating Unusual Trading Activity
    3 Min Read
    software developer using ai
    How Data Analytics Helps Developers Deliver Better Tech Services
    8 Min Read
    ai for stock trading
    Can Data Analytics Help Investors Outperform Warren Buffett
    9 Min Read
    media monitoring
    Signals In The Noise: Using Media Monitoring To Manage Negative Publicity
    5 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: SaaS economics
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Big Data > Data Mining > SaaS economics
Business IntelligenceData MiningData WarehousingPredictive Analytics

SaaS economics

TheodoreOmtzigt
TheodoreOmtzigt
3 Min Read
SHARE

While researching the offerings of rPath, I came across Billy Marshall’s blog . Among many of the tidbits of insight, two jumped out of me.

Complex server applications have typically so many configuration hooks that application deployment is not easily automated. This implies that bringing up and shutting down applications is not the same as what we are used to on the desktop. Applications become tightly coupled to physical host configuration, in…


While researching the offerings of rPath, I came across Billy Marshall’s blog . Among many of the tidbits of insight, two jumped out of me.

Complex server applications have typically so many configuration hooks that application deployment is not easily automated. This implies that bringing up and shutting down applications is not the same as what we are used to on the desktop. Applications become tightly coupled to physical host configuration, internal IT processes, and the prowess of the admin. Billy blames this on OSFAGPOS, or On Size Fits All General Purpose Operating Systems. OSFAGPOS is deployed in unison with the physical host because the OS integrates drivers that enable access to the physical hosts’s hardware resources. A RAID or network stack can be configured to improve performance for specific application attributes, and it is this separation of roles that creates the root of all evil. rPath’s vision is JeOS (read “juice”), or Just Enough OS that packs all the meta data needed for the release engineering process to do the configuration automatically. This would make application startup fast, cheap, and reliable.

More Read

dreamstime l 131675911
Can AI Help You Get Better Headshots?
First Look – EpiAnalytics
Being a Trusted BI Advisor
Fast Forward to 2014 — Gartner Predicts the Future of Business Intelligence and Data Analytics
Role of AI-Driven Image Recognition in Modern Security

Here is an economic reason why new SaaS providers will siphon off a portion of the software universe. A typical ISV spends between 25 and 40% of its engineering and customer support expense on peripheral functionality such as installers, cross-platform portability, and system configuration. Since a SaaS provider solves these issues through a different business model it frees up a significant portion of the development budget to work on core application features.

In my mind, the cross platform aspect is not as clear cut as Billy makes it appear. Whereas for an ISV the economic lock-in limits the TAM for its application, for an SaaS provider it can cut both ways. If the SaaS provider caters to customer for which high availability is important selecting gear from IBM or Sun might create a competitive advantage AND credibility. But if the SaaS provider caters to customers for which cost is most important, selecting gear from Microsoft/Intel/AMD might be the better choice. The hardware platforms have different cost structures and if a SaaS provider wants to straddle both customer groups they still need some form of cross-platform portability.
<–URL–>

Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

business using business intelligence
How to Use a Competitive Intelligence Dashboard to Turn Market Data Into Smarter Marketing Decisions 
Analytics Big Data Exclusive Marketing
fda14abd c869 4da5 943c c036ad8efc2e
How Data-Driven Journalists Are Using API News Apps to Improve Reporting
Big Data Exclusive News
0622cae5 f7d7 4f74 84b5 eabd1a823dca
How Data-Driven Grocery Recommendations Help Shoppers Eat Better With Less Effort
Big Data Exclusive
business recovering from data loss
How Data-Driven Businesses Protect MySQL Databases from Shutdown
Big Data Exclusive

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

AI helps provide better dental care
Artificial Intelligence

AI Technology is Disrupting Dental Care in the Best Way

6 Min Read
Image
Big DataData MiningData Quality

Data Mine or Data Yours? Info Wars and the Escalating Arms Race

3 Min Read

Does It Take a Scientist to Find Gold in Big Data?

0 Min Read

The Nerd-Geek Venn Diagram Applied to Analytics

2 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

ai is improving the safety of cars
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence
AI and chatbots
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-25 SmartData Collective. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?