Version: 2008
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Comments on: Revenge of the desktop app

The cloud is taking over the world of applications. But if this is really the case, then why is my desktop littered with hybrid applications such as Thwirl, Yahoo Messenger, Alert Thingy, Skype, and Gtalk.

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by The_Decider April 21, 2008 8:39 AM PDT
SaaS is a model doomed to fail. No security, loss of privacy and in some cases a subscription model. Paying for software and upgrades is bad enough, getting bent over every month is another.

No business worth anything is going to trust Google.

No business with intelligent people is going to want to embrace a model that fails if Internet access goes down.

Business is already at risk for exploitation from inside and outside the company, moving everything online increases the risk exponentially. It is too easy to successfully use MIM and other attacks and most employees are not knowledgeable enough to know when and how to stop them.

There is a lot of advantages to be gained taking data online, but it comes with many pitfalls and traps that have yet to be addressed in any meaningful way.
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by boratebomber April 21, 2008 9:15 AM PDT
SaaS is a model doomed to fail. Storage of data in countries with adversarial laws pertaining to privacy cedes your company's data to Patriot Act data mining or worse.
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by umbrae April 21, 2008 10:11 AM PDT
Same as the other users, I do not see SaaS really kicking off. If there are free tools there will be some success since many younger people will use it. However, with ISP's struggling with bandwidth issues and management and the loss of security and privacy, I just cannot see this long term.

Most of this is fueled by Google and falling value in Windows; however, once the fad has ended we will see the desktop pick back up.
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by Webconomist April 21, 2008 10:24 AM PDT
SaaS as it is today will change drastically before it succeeds. For the Web OS to truly work, it will mean these companies, like Google does already, will sell servers to Enterprises and governments. They will administer the applications themselves across the organization. Small businesses will rely on the software company since they can't afford the server appliance. So we will see a hybrid business model evolve, but you are looking at a minimum of 7 years before we see a significant change. Until then, apps like Twitter will not enter the business domain.
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by tsupasat April 21, 2008 11:05 AM PDT
Doesn't this post exactly describe Microsoft's software-plus-services concept? Why not mention it?
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by private user 2 April 21, 2008 11:19 AM PDT
Oh I can see SaaS being used within an organization if it was run on said organizations own servers only accessible internally. Anything short of that you wind up exposing customer information to lord only knows what.

Even for an individual, it would be a cold day in a very warm place before I would put my personal financial information on somebody else's computer out of my own direct control.

I'm sorry, but on the internet paranoia is not a mental illness, it's a survival skill best cultivated and refined. There are just to many incidents of personal information being exposed to rely on "cloud computing" for truly sensitive information.
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by April 21, 2008 11:19 AM PDT
Depending on the business size, SaaS may or may not be the model. But if we are to look at the crystal ball and look seriously as what the ball is foreshadowing, I think we will discover where the software delivery or IT industry is at today is frightenly similar to where the public utility industry was back in the 1920. If we pretend the the power generators are the servers today, the home appliances that we use today as end devices, the application as the actual electricity, and the Internet as the electric power grid, I don't think it is too much to say that within 5-10 years, SaaS will be the dominate model. In the public utility industry, the shift from private on-premise power generation equipment to central power generation (the cloud) took about 10-15 years. And the driving force behind that shift were:

1. Economics: $10000 vs $0.1 to generate 1 KWh power.
2. Scalability: power lines to distribute power across massive geographical area has dramatically scaled. This is the same as the shift in broadband technology. From modem in the 90s, to DSL, to fiber in the 22nd century
3. Reliability: Centralized power generation and distribution got more and more reliable. The days of random modem disconnect days are gone. 24x7x365 always on will be the norm. Some argue that no business will be dumb enough to go with SaaS and run the risk of having the Internet as the single point of failure. I would argue that. I would say a good majority of business worldwide today run off of centralized publicly generated power. So what happens if the power plants fails, halts, or the power line got cut? Simple... **** hits the fan. But guess what, when the dust settles, we still go back to the public power. And the amazing thing is that we don't go out and but a $10000 power generator. Why? Simple. The economics far outweights the risks.

As Nicholas Carr says, "the supply of any business will always gravitate towards the most its economically efficient model."

In the end, centralized power generation model seems to have won out. So go fiture what the future holds for SaaS. If I had a million dollar, I would bet the SaaS will win at the end of the day. Maybe not today. Maybe not tomorrow. But that day is not too far away in the future.
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by zclayton2 April 22, 2008 4:48 AM PDT
". . .why is my desktop littered with hybrid applications . . .?"

Elementary Dan, It's what works for you. All those things - OS, "Web 2.0", gadgets, widgets, etc. ad nauseum - are just tools to let you work most efficiently. You prefer some desktop presence. The Web 2.0 fringe like to depend entirely on being connected. I am a true dinosaur and want to be able to connect when I want to and everything should be on my desktop when I am not connected. It all works the way we prefer, and that's a good thing. Why ask why. . . other than its a good starter for discussion.
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by dfarber April 22, 2008 1:07 PM PDT
Good comments....we are moving to hybrid world and I agree that SAAS is not doomed to fail...the technology trends and economics, and history, are behind it....
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