While the world may be buzzing about the revolution of Software as a Service (SaaS), Microsoft has come forward to stomp its feet down and dispel the hype.
For Redmond, little has changed in its world-conquering strategy and the message is "Software + Services".
Speaking at a media briefing in Bangkok, Microsoft Thailand platform strategy manger Fukiat Julnual explained how software and services is the right answer that encompasses the needs for Web 2.0, services oriented architecture (SOA) and SaaS while allowing Microsoft to tap into its existing distribution and partner network.
"In the past, we got developers to write software, put it in a box and ship it to distributors to pass on to resellers. In the past we bought a machine, installed things on it. But today, we have Hotmail, Yahoo mail, Gmail. We can use it as an application. If the application has been updated, in the past it was a matter of manufacturing and shipping CDs. Today, if Hotmail is updated, the look and feel is immediately changed for everyone," he began, so far playing the same tune as the rest of the industry.
"With complex applications such as customer relationship management (CRM), what changes is that rather than installing the software on a client themselves, the customer goes to talk to a company who has machines, installs software on them and then charges the customer on a pay per use or subscription model," he explained.
For Microsoft, it is still the same model of selling software to companies who may choose to offer it as a service, hence the term Software and Services. Fukiat said that Microsoft's policy is not to compete with its partners and it has no intention of becoming a Google or Salesforce.com.
That said, Microsoft Live is developing an advertising network to work with, rather than replace, the traditional revenue stream.
One example is an email service. Rather than do pure play SaaS, the same Microsoft exchange server can cater for SaaS with the vendor, hosted with a third party or the traditional on-premise way. End users can buy Exchange or a third party can buy Exchange, host it and resell it as a service.
Thai mobile phone operator AIS recently signed a deal with a systems integrator on this model. It was the SI that bought the software from Microsoft and then re-sold it to AIS as a service. This allows the partners to deliver additional programs or customizations for different markets.
"If we only have makers and end users, what happens to the people in the middle? The resellers and partners? Our business model is strong based on our partners," he noted.
That said, outside of Thailand, Microsoft does offer Dynamics Live, a CRM solution that competes head to head with Salesforce and Oracle Siebel on demand.
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