I really thought that software rentals were pretty much dead. But then I clicked on a hosted email add and found myself looking at IBM, renting software.
IBM – On Demand Business
The whole ASP thing came and went during the bubble. one of the biggest problems that they encountered was the fact that people really weren’t ready for it. Well, most people anyway. However, rising costs and an exploding small business segment means that maybe the coffin lid wasn’t closed as well as I thought.
A huge problem for these services is ‘what about my data’. One of the biggest deflections of this is “What about it?” People are starting to realize that their data is as safe on someone elses exchange server as it is on their own. Especially when they don’t know how to admin an email server. I’ve seen many offices where someone was the IT person, even though they didn’t know/care/desire it.
Couple these admissions of infrastructure realities with services like BaseCamp and I start to sound like a sales pitch for ASPs. With mobility and platform issues, a well run ASP starts to look more and more like a sounds solution. As always, lets look at the numbers.
Basecamp Plus, with Time Tracking sells for $49/month. MS Project, without Project server is approximate $558 per seat. You have an $80,000 dollar project that lasts six months and uses 4 staff + yourself (the PM) full time. Everyone must have full access to the project plan, though only you need to make changes. Everyone needs to submit time sheets. Two of the four staff are really subcontractors. The other two work in your office.
If you bought the whole team copies of Proj. it would cost about $2,500. You’re not going to do that, because only you need to make changes, so it’s only one copy. At this point, Basecamp is more expensive.
However, you need do whole lot more work using Project, so the hours cost makes Basecamp a winner. And now for the kicker, if you already owned project, basecamp is way more expensive but you can’t give the client easy viewing access to your project info with Project like you can with Basecamp.
I’ve gotten WAY off topic.
My point here is have a niche market right now. But, if I were a betting man, I would say that niche will only get bigger.