Rapid Growth in SaaS and Cloud Computing
The buzz word today is “cloud computing,” and it represents the dispersal of computing resources across the Internet into new data centers. George Gilder in an article in the November 10, 2008 issue of Forbes titled The Coming Creativity Boom says this about cloud computing, “Often regarded as a new centralization of computing, the new architecture in fact unleashes huge new efficiencies and opportunities on the edges of the network, impelling vast new tides of traffic across it.” We have been aware of this for quite some time and that is why we have been concentrating on ideas that take advantage of this tremendous opportunity to launch new businesses that can build huge recurring revenues from, what Guilder calls “huge new efficiencies and opportunities” that will enable entrepreneurs to offer more efficient services over the Internet. Cloud computing will enable entrepreneurs to develop special applications Software as a Service (SaaS) over the Internet that can generate generous recurring revenues with huge profit margins. What’s more is that many of these highly profitable new businesses will serve markets that become virtual communities as well.
Since the sale of the first iPhones in the summer of 2008 the number of phone apps has soared from 11 to more than 325,000 and the apps business itself has grown to a $7 billion market in little more than 3 years. What is also exciting is the emergence of SaaS apps to support virtual business applications. SaaS applications by themselves amounted to $14 billion in 2010. This is the reason we founded and started SaaSware.com. SaaS services will become the biggest wealth builder in the history of the Internet.
SaaSware.com’s New Model of Investing in SaaS
SaaSware.com is a totally new concept company that will aggregate investors, authors, developers of SaaS applications and powerful enterprise software seeking a “fit” in SaaS. SaaSware.com will also acquire unfinished software projects that had been under development that, because of the economic slowdown, lost their funding source and now require a small amount of capital to complete the development. SaaSware.com has conceived a new efficient way to capitalize SaaS businesses that is outside the box of traditional investments. SaaSware.com is using the “cloud” to develop and run potentially multimillion to billion SaaS businesses and is doing it quickly.
We understand the potential of this “new order” and foresee just how SaaSware.com can become a principal enabler in the launch of literally thousands of new, highly profitable virtual Internet Service businesses. Y-Combinator is another great SaaS aggregator business that is focused on both phone apps and SaaS apps. The difference between SaaSware.com and Y-Combinator is that we concentrate on finding authors (content providers) from all over the world who have an idea for a SaaS service as a result of their own business experience. Y-Combinator’s business model is to collaborate with techies in the development of ideas whereas SaaSware.com’s plan is to collaborate with authors. Authors will have a reason to bring us their ideas because we can help them with the development of their idea, finance it, take the idea to the market and also provide a “turn-key” solution to operate the business side of the enterprise. In many instances these innovative SaaS businesses can be created and launched with very small amounts of capital. We are talking about anywhere from a few hundred thousand to a few million dollars to build the software and launch businesses that can scale in just a few years to $20 to $100 million and more with gross profit margins in excess of 80% of gross income.
SaaSware.com has a growing SaaS portfolio
We are also in discussions to acquire interests in some SaaS products that are well into their development and are close to being launched.