Microsoft acknowledges SaaS

Microsoft has launched Hosted for Applications Version 1, which consists of tools meant to help Microsoft vendors to gain ground in the SaaS market. Windows Live and Office Live are other web-based solutions from Microsoft; these were launched in November 2005 and February 2006, respectively. Office Live is targeted toward SMBs. Industry watchers see Microsoft’s move as an acknowledgement of the fact that SaaS is occupying mind space of users and channel partners. Microsoft has also earmarked $ 2.4 billion for web-related R&D. Hosting for Applications is intended to help vendors and hosting service providers who wish to surmount the initial barriers while converting their solutions into SaaS.

Hosted for Applications will help vendors fulfill requirements with respect to uptime, service provisioning, security, and management. Uptime is maintained with the help of Microsoft Operations Manager 2005, which is used for identifying and resolving issues before they take on critical proportions; thereby keeping their end of the SLA. Routine administrative tasks such as adding new users, updating directory entries, and the provisioning of applications can be automated with the help of Microsoft Operations Manager 2005. Hosting for Applications will make it easier for vendors of legacy software solutions to compete with pure play SaaS vendors in terms of service levels and price.