Microsoft SaaS News Looks Disappointing
Posted by Bob Warfield on March 3, 2008
So far it looks to be just Exchange and SharePoint. Arrington is calling it disappointing and Nick Carr hasn’t commented at all.
I continue to think it makes a lot of sense sometime soon for Microsoft to announce more SaaS, but as I also cautioned, I won’t be surprised if it drags out quite a long time. In particular I wonder if the investment community is ready for new shock waves after the Yahoo ordeal. It could be that Microsoft is thinking discretion is the better part of valor until that saga is done.
Phil Wainewright says the issue is concerns over profitability with the SaaS model. As have said, introducing SaaS at the right point in Microsoft’s lengthy upgrade cycle, after most have upgraded, creates a window to minimize this effect. But, I can’t see investors letting them do it. As Phil says, “Office in the cloud? Steve Ballmer will lose his job before that happens.” Too bad for Microsoft!