More SaaS Trends

Microsoft and Google are engaged in an arms race to release SaaS products. As Google scrambles to complete its online office offering, Microsoft's Windows Live has been on a never ending set of press releases.

If you are like any of the millions of people out there, you are wondering what exactly is SaaS and why is it different from the ASP model. Well it must be a tricky question to answer, since most answers I've heard have been self serving. The best answer I have so far is that web browsers and web technologies are significantly further ahead then they were 8 years ago and computers are faster. Most people have broadband, and well ASPs basically failed (back then).

Since this SaaS push is really starting to gain traction, and companies like SalesForce.com are making millions, it needed a new name. I guess its like calling something Web 2.0. There's no obvious line between 1.0, but clearly we've come a long way.