Scrutiny on the SaaS Business Model

Every since TSIA started our tracker of publicly traded cloud computing companies (The TSIA Cloud 20), I have been questioning the financial business model of SaaS companies:

Today, a colleague pointed me to a blog entry that also finds reasons for concern:

Read all three of these blog entries. Is there something we are missing? Or, as TSIA would argue, will SaaS providers need to fundamentally change the way they operate in order to achieve long-term profitability?



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