Sunday, June 19, 2011

Apple's App Store model setting the stage for enterprise vendors to win big

Apple's success with its App Store has proven that cloud computing and leveraging a community of third parties to generate discrete functionality is undoubtedly the recipe for success with consumer-focused software. But what about for the enterprise?

I strongly believe enterprise SaaS solutions, following's lead, will ultimately generate massive revenue growth and profits that will dwarf consumer purchases.

This blog post by Dennis Howlett offers some worthwhile insight on this topic.

Regarding Apple...

"Despite the fact many of the apps you find are…err…useless, Apple managed to earn $743 million in the last quarter from this source. Pundits reckon that will rise 30% in the coming year. But that only scratches the surface. If you take the six month numbers, double up and add for growth then an annual figure of $3.5 billion could be in the ballpark."
Regarding the enterprise cloud opportunity...
"Who would not give their right arm for a slice of the Apple pie as applied to the enterprise space? How big could those numbers get? I’ve done some back of fag packet calculations and reckon there is every possibility that in the SAP space alone, we could be looking at numbers in the $24-60 billion range."
The post can be found in its entirety here -

Where Apple walks will the enterprise vendors follow? | ZDNet

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