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Why Some Traditional Enterprise IT Vendors Are Scared of SaaS

By Bernard Lunn / October 8, 2008 3:50 PM

Some traditional enterprise IT vendors are selling the line that SaaS is a passing phase, that it is "old wine in new bottles". They are telling their market that SaaS is really no different from the discredited Web 1.0 Application Service Provider (ASP) model or even that it is simply the ghost of the ancient mainframe Service Bureau come back to haunt us all. This post shows why their analysis is wrong. It also shows why some traditional enterprise IT vendors feel so threatened by SaaS and why the economic downturn just made this a major issue.

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