TECH TALK: 2006 Tech Trends: SaaS, Emerging Markets

10. Software-as-a-service is happening.

Yet another old model is being reinvented. Google did it to Search and online advertising, while is doing it for software delivery. The traditional model of licencing software is giving way to making applications available over the Internet for companies to use. This is especially useful for small- and medium-sized enterprises who can now automate business processes without necessarily having to make big upfront investments in expensive hardware and software.

Mercury News: The office moves to the Web Documents, e-mail and spreadsheets move off your desktop computer to the Web. A host of companies big and small are building new ways to transfer the computer desktop experience onto the Web, and we expect that trend to accelerate in 2006. On the small side, companies such as Writely, Jotspot and Silveroffice are demonstrating that creating word processing documents and spreadsheets can happen just as easily on the Web as on the desktop. And having the documents on the Web makes it easier for people to collaborate.

Internet News: On-demand software, also known as hosted or software as a service (and formerly known as the ASP model), received nods from analysts who forecast significant penetration into the enterprise software market. Scalability issues, such as ‘s recent outage, will continue. But small to mid-sized companies will continue to be attracted to the low monthly fees and outsourced administration that hosted applications offer. Thanks to the availability of platforms and tools from companies, including and Microsoft, with its Windows Live, hosted applications will continue to proliferate and worm their way closer to basic enterprise systems.

IDC: IT delivery has been shifting from products to services over the past several years. But in 2006, IDC expects this model shift to accelerate. The most obvious evidence of this shift reaching a tipping point will be the announcement in 2006 of next-generation versions of applications delivered as an online service (e.g., from one or more of the packaged application leaders (SAP, Microsoft, Oracle).

11. Emerging markets are where the action is.

Because their infrastructure has been so pathetic, emerging markets will leapfrog to the new world faster. We have already seen this in India with the mobile infrastructure. Emerging markets are going to decide technologys next big winners (and losers). Even companies like Vodafone are now betting on emerging markets for their own continued growth. The next billion people are finally getting integrated into the marketplace and that will create its own challenges and opportunities. I believe that the next Google will come from the worlds emerging markets.

TECH TALK 2006 Tech Trends+T

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.