Showing posts with label business models. Show all posts
Showing posts with label business models. Show all posts
18 July 2015
The end of tote bags?
Melody Kramer argues that the current business model for public media stations (radio and TV), i.e., "member" = "financial contributor," needs some shaking up. She offers six novel ways to engage with the community, ways for people to engage with and provide valuable support to a station that don't involve monetary pledges. Interesting, thought-sparking stuff.
11 January 2008
A/K/A timesharing
The Economist brings its customary skeptical perspective to the software-as-a-service market:
The article includes some forecasts (courtesy of Gartner) for the size of the SaaS market through 2011.
The biggest doubt is whether you can make much money selling software this way. Vendors of conventional enterprise software made a killing by requiring customers to pay a high licensing fee upfront and then charging them for maintenance. Web-based firms, by contrast, have to make do with subscription fees. This means they are not able to grow as quickly: both NetSuite and Salesforce have been around for almost a decade. They have had to invest a lot in attracting customers and building data centres to supply their services. As a result, NetSuite has never posted a profit; at the end of September, its accumulated deficit amounted to nearly $242m. Salesforce is barely profitable and boasts an otherworldly price-to-earnings ratio of around 660.
The article includes some forecasts (courtesy of Gartner) for the size of the SaaS market through 2011.
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