Software's Eve of Destruction
Salesforce.com's browser-based, pay-as-you-go software offered a starkly simple alternative to the complex, costly and daunting software platforms from giants like SAP (SAP), Oracle (ORCL) and Siebel (SEBL). With that change, Salesforce.com pioneered a new market called, for better or worse, software as a service.
"The whole software industry is being disrupted by the software-as-a-service approach," says Gordon Ritter, an Emergence partner and a former vice president at IBM (IBM). Ritter says that the rise of Salesforce.com came shortly before the decline of Siebel, and its subsequent purchase by Oracle -- and it's no coincidence.
"Salesforce.com is taking down Siebel and pulling biz from it. You have a giant coming to its knees with a start-up disrupting them with a better value proposition," Ritter says. "We see new entrants coming in with this software-as-a-service approach. We see a giant industry with disruptive forces hitting it."
Late Wednesday, Salesforce announced that
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