September 2, 2008 3 Comments
In a mind numbing interview with ZDnet, Lawson Software CEO Harry Debes made the prediction that Saas software model is bound to collapse in two years. Even if I try to put aside his opinion (however dumbfounded it is), what I cannot comprehend is how a CEO of a public company can call his customers stupid and that they are addicted to software like they would to cocaine. Read that again – stupid? cocaine?
In his interview, does he say anything about benefits to his customers that Saas brings to the table? It all seems to be a pitch on how beneficial on-premise software model is to the vendor – profitability, captive customers, switching costs etc. I wonder if Harry has a clue as to the pain points involved in installing and upgrading on-premise software? Maybe he should so that he can feel the pain of his stupid, cocaine addicted customers. Maybe companies like Google, Microsoft are all stupid too for having Saas models for delivering software.
While I totally agree that Saas is not the panacea to solve everything that is wrong with software, that many of the Saas vendors are not yet profitable, I cannot come to terms with him calling his prospective buyers stupid.
What is next to collapse Harry – social media?