Beating Google in Software as a Service (Saas)
As far as I can tell, Google 2.0 (or Google 2.71828 as I like to call it) has been mostly about SaaS.
Google is now to the SaaS industry what Microsoft has been to the desktop software industry. VCs are afraid to invest in something that Google may copy and co-opt.
However, just like how MS had failed to beat Quicken with MS Money and how they've failed to beat Adobe and Macromedia (which are one now) Google will fail to beat those who know how to run circles around it. One exit strategy for such companies may be a sale to Yahoo (just kidding, but why not!)
In general here is what SaaS companies can do to run circles around the likes of Google and Yahoo.
1. Let Google and Yahoo pend billions to expand their share of the general consumer market. You can't beat them there. Focus on a market niche.
2. Provide unique value through product differentiation.
3. Provide higher value through integration with partners' products and services.
4. Cater to the needs of your niche market on much more personal basis than Google or Yahoo can ever hope to accomplish.
5. Offer vertical applications that Google and Yahoo would not be interested in offering (too small a market for them) to enhance your offering.
Posted by Marc Fawzi at Evolving Trends