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October 10, 2007

Software-as-a-Service offers Upside to SPs

As the global business climate drives the need for increased flexibility in IT services, it will become increasingly important for SPs to dynamically deliver services to their business clients. This Software-as-a-Service (SaaS) business model will provide business customers with the ability to purchase and pay for services on an as-needed basis.

To support the SaaS model, SPs will have to create a software layer which sits on top of the CPE and manages the applications and services which are currently being delivered by the SP. This layer will support dynamic, end-user provisioning and will monitor the hardware in the business customer's environment to ensure resources are available to support the end-user's processing needs. This will also provide the Service Provider with a source of business intelligence as their sales force will now be able to clearly identify when a customer's hardware must be upgraded to meet their business needs.

By delivering SaaS, the SPs will take a large step in meeting the needs of IT managers trying to stay in front of their company's constantly changing business needs. Ultimately, I believe it will drive business customers to view SPs as a true partner versus simply a provider of bandwidth.

Posted by Joe Wojtal on October 10, 2007 09:21 PM

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Posted by Ronen on October 12, 2007 10:26 AM

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