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03/07/2010

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Hi Evangelos
Thanks for referring to my post on the SaaS journey. I agree with the parameters you laid out for determining SaaSyness of a service. Very critical to draw the distinction between the multi-tenancy based and the other variant usually bucketed under on-demand. Oracle, for example, hosts application under the Oracle on-demand umbrella but it is one instance per customer - with a whole lot of virtualization, automation to generate the efficiencies.

I also feel that one additional characteristic of SaaS is the iterative nature of the application and ability to allow small and large companies to use the same app albeit with different scope.

It is true that SaaS companies tend to develop applications and iterate more rapidly than on-premise software companies because they have better control of the code. We typically consider this issue when we evaluate the engineering practices of a SaaS company and the quality of its product development practices.

Thank you for the comment

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Evangelos Simoudis is a Senior Managing Director at Trident Capital where he focuses on investments in SaaS, Internet and Data.

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