Comments on: Salesforce.com Enters Web Hosting Business

By: Joe Panettieri

Joe Panettieri — Mon, 10 Nov 2008 16:59:08 +0000

You'll find another follow-up blog from Vembu here. The topic is backing up to the cloud. Full disclosure: Of course blog is vendor-specific but it does offer some more info on how cloud-based storage works.

By: Joe Panettieri

Joe Panettieri — Tue, 04 Nov 2008 02:01:37 +0000

Sekar: Thanks for your perspective. MSFT’s approach (software + service) does make the most sense. But they’ve alienated a few partners by offering SaaS direct (as an option). Microsoft really had no other choice in the matter but I don’t think VARs will forgive the company for making that direct SaaS move.

By: Sekar Vembu

Sekar Vembu — Tue, 04 Nov 2008 01:34:50 +0000

Joe,
Good observation. Looks like the next bubble will be in the cloud where every large vendor would be trying to become a cloud platform. I have a feeling salesforce.com is getting too ambitious here. They do not have the deep pockets of a google or a microsoft or the expertise of an Amazon. Their profit margins in their current business are quite low. So they are desperately trying to become a platform. I am doubtful about their strategy. They will be better off staying focused at the application layer leaving the bottom layer of the cloud infrastructure to others.

On your comment “But I expect a hybrid approach to emerge, where customers mix and match their on-premise options with cloud services”, we at Vembu also strongly believe in a hybrid approach. In that context I think Microsoft’s software plus services approach seems to make the most sense. But whether Microsoft would execute this right is another question.

Sekar.
Vembu Technologies