Archive | October, 2009

What The Heck is DaaS?

[Note: this was a post I wrote while CEO of Jigsaw]

DaaS – Data as a Service.  This post is all about DaaS, and how DaaS is going to transform the data model in exactly the same way that SaaS has transformed the software model.

First, let’s get really clear on how SaaS changed our mindsets.  Ten years ago companies that utilized software were in the business of procuring and managing software.   Companies had to first buy the software, then install it on one’s own servers, and finally manage that software over time.  Many companies realized that procuring and managing software wasn’t a core competency – but ten years ago there was no other choice.  Salesforce led the SaaS revolution by convincing companies that choosing to use software as a service was a better way to go.   Interestingly, Larry Ellison is well known for both dissing SaaS as a model that will never make money , and at the same time proclaiming that Oracle will eventually dominate many SaaS offerings.   My belief is that SaaS has fundamentally transformed the software model, and will continue to do so into the future.  All the big enterprise software companies are making huge bets on SaaS.

Take a look at how most companies deal with data today.  They spend a bunch of time and money buying lists, attending tradeshows, and having sales teams prospect for leads.  After companies procure their records the data goes into its container (example: Salesforce) – and it usually just sits there and rots.  Most SMB companies perform zero maintenance on their databases.  Large companies spend a ton of money on the maintenance of their data sets, as well as on procurement.  For companies of all sizes their customer and prospecting database is the lifeblood of their business.  (SaaS got initial traction with CRM for a reason!).   In short, companies spend a lot of time procuring and managing the records that drive the growth of their businesses.  Why would they want to – given a choice to consume data as a service?

My first prediction for this blog is that the data industry is about to undergo a DaaS disruption.  My intention is to make sure Jigsaw is leading the charge.

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