{"id":180,"date":"2006-09-25T14:07:00","date_gmt":"2006-09-25T21:07:00","guid":{"rendered":"http:\/\/paulgillin.com\/2006\/09\/chous-saascon-keynote-stresses-new-economics.html"},"modified":"2006-09-25T14:07:00","modified_gmt":"2006-09-25T21:07:00","slug":"chous-saascon-keynote-stresses-new-economics","status":"publish","type":"post","link":"https:\/\/gillin.com\/blog\/2006\/09\/chous-saascon-keynote-stresses-new-economics\/","title":{"rendered":"Chou's SaaScon keynote stresses new economics"},"content":{"rendered":"

Tim Chou delivered an impassioned case for SaaS, tearing down the objections he\u2019s heard from IT people in his years as head of Oracle\u2019s on-demand unit. The economics of corporate IT are fundamentally poor, he said. \u201cAt most IT shops I\u2019ve visited, well over 75% of the budget is spent managing existing systems,\u201d he related.<\/p>\n

SaaS reshapes the basic economics of IT, making them much more efficient. \u201cEvery innovation in IT that has changed the economics has been successful,\u201d he said. A big reason is that SaaS companies can build their infrastructure on standardized components, greatly simplifying the delivery systems. Most corporate computing environments are far too complex. \u201cIf I took a paint brush and colored every computer running SAP a different color representing its software stack, its hardware and storage configurations, and what processes it\u2019s running, I would venture to guess I would run out of colors,\u201d he suggested. <\/p>\n

\"\"<\/a>\u201cGoogle has 400,000 computers and my guess is we\u2019d paint them all the same color. That standardization enables specialization and repetition. If all my computers are different, I have no ability so specialize or repeat.\u201d He estimated the fully-loaded cost of supporting a typical corporate user is $1,000 per month. SaaS puts users in control of their server environments. \u201cThe user has become disempowered,\u201d he said. \u201cNo one wants to upgrade software. The vendor pushes that. With SaaS, we have the opportunity to shift the playing field from vendor-centric to user-centric.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Tim Chou delivered an impassioned case for SaaS, tearing down the objections he\u2019s heard from IT people in his years as head of Oracle\u2019s on-demand unit. The economics of corporate IT are fundamentally poor, he said. \u201cAt most IT shops … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[1],"tags":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pTy95-2U","_links":{"self":[{"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/posts\/180"}],"collection":[{"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/comments?post=180"}],"version-history":[{"count":0,"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/posts\/180\/revisions"}],"wp:attachment":[{"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/media?parent=180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/categories?post=180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gillin.com\/blog\/wp-json\/wp\/v2\/tags?post=180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}