MSPmentor

Salesforce.com (CRM) delivered good news — and bad news — in its latest quarterly results, pulling down the SaaS 20 Stock Index 2.86 percent for the week ended August 22. It’s the first time since July 11 that our software as a service index has posted a weekly decline.

None of our 20 index members climbed in a significant way for the week ended August 22. Major weekly decliners included:

• Salesforce.com (CRM, -15.61%)
• RightNow (RNOW, -8.99%)
• Athenahealth Inc. (ATHN, -8.14%)
• Kenexa Corp. (KNXA, -5.43%)
• SuccessFactors Inc. (SFSF, -3.70%)
• Google (GOOG, -3.63%)
• Vocus Inc. (VOCS, -3.22%).

But the real SaaS story on the week was Salesforce.com. Here’s why investors went running for the door.

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If you want to see how Microsoft and Google are competing in the software as a service (SaaS) market, head back to college. As I’ve written here a few times, Hofstra University, the University of Phoenix and several other large colleges have embraced Google Apps to manage student email, alumni email and collaboration. Now, Microsoft is taking steps to more actively promote its rival offering: Live@edu hosted applications.

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Salesforce.com announced strong quarterly financial results today, and the company expects revenue for its full year (ending in January 2009) to exceed $1 billion. Does that mean Salesforce.com will become the first $1 billion software as a service (SaaS) company?

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Software as a service (SaaS) remains a hot topic on Wall Street, especially as Salesforce.com shares hit an all-time high. The company recently announced a partnership with Google, and there’s speculation on TechCrunch.com that the search giant and the on-demand software company may get even cozier together.

At a time when some managed service providers are worried about Dell, Microsoft and Google moving onto their turf, Cisco Systems is taking a stand and offering assurances to MSPs.

During a phone chat with MSPmentor, Al Safarikas (pictured), Cisco’s senior director of service provider managed services, said Cisco remains true to its word and has no plans to become a service provider.

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It’s a classic Microsoft tactic: Arrive late to a party and then attempt to steal the show. The has company announced the next chapter of its Software as a Service (SaaS) effort. If you offer managed services, it’s time to listen up. I spent some time analyzing the Microsoft initiative and I see some clear opportunities–and challenges–ahead for managed service providers. Here’s a rundown of the 10 things MSPs need to know about Microsoft’s SaaS strategy. Read More >