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October 12, 2009

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Jeff Tognoni

While I am a big believer in PaaS the author is mistaken if he believes that today's SaaS applications improve the relationship between customers and their vendors by making the vendor more responsive to the customers individual needs. Multi-tenancy SaaS, where Multi-tenancy is done at the application level, not the PaaS level, leads vendors to push for as generic a solution as possible. As any business strategists will tell you that if the business process you are automating has strategic significance, simply doing it the same way as all of your competitors will never allow strategic differentiation between companies. This is the reason that companies with high differentiated business models do not use generic software except for processes that they could simply outsource anyway because they have no strategic significance. SaaS 2.0 will put a change to this by moving Multi-tenancy to the PaaS level and allow companies to run highly customized packaged software or even fully custom applications with the same cost advantages of today's SaaS 1.0 apps.

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