Somewhat contradictory to a discussion we had in which it seemed like you saw the disruption of early pioneers of SaaS like Salesforce being successful because of an innovation in business model (from licensing to software subs) – has that thinking evolved or is this an addition to that?
Somewhat contradictory to a discussion we had in which it seemed like you saw the disruption of…
Nicolas Wittenborn
1

I’m working on a post on that topic, but the key idea is:

Historically, some of the leading SaaS companies become so by leveraging a shift in business model (from onprem to SaaS), but at the moment, I think some of the incumbents are becoming more resilient to competition than ever before — at least, founder-lead companies like salesforce, oracle, etc even MS.

In those categories, it’s pretty hard to disrupt them by looking at the obvious shifts (ie. a mobile-first CRM, a machine-learning first CRM, etc.) because they might come late (ie. microsoft to cloud), but they can leverage their scale and still manage to come to the lead positions.

I think there’s probably a bunch of good opportunities to build good companies with the shift from “onprem” to SaaS. But I’m a lot more excited about the “SaaS/mkt places value proposition” applied to other different problems.

I think SaaS and marketplaces are about:
a) digitalising and making connections easier and/or more convenient (between customer-employee, employees, customer-supplier, etc.)
b) economies of scale of cloud (networking, computing, storage, etc.)
For both aspects, I think we are at the very early stage in almost all industries- and that has a loooot of consequences, but I still need to refine my thinking to be able to publish it.

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