Lincoln Murphy is one of the guys in Cloud Computing consulting that "gets it". He has a clear understanding of the business "dos and don'ts" of producing, marketing, and selling SaaS. Here's a great insight from him:
“Lincoln Murphy pointed out that within servitized products, it is the service that keeps commoditization at bay. A successful vendor becomes more directly involved and responsible to the end-user both as the service provider and the subject matter expert in the field they represent. As Lincoln pointed out – we can go to our personal computer and start “Word 2003″ and it will work just fine – just as it did in 2003. But if Word was online, we would expect it to seamlessly evolve and be something more that it was six years ago – just as iGoogle is a clear line of evolution from the iconic single search box we all came to love when it first began.”
Here's the whole article:
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