Market Gap Investments
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  • July23rd

    I recently reviewed my accounting software, and thought it time to upgrade both my process and software.

     As I started looking around, I became aware that the best solution for me existed in the “cloud”.

     I have heard of cloud computing, however my experience has been relatively limited. I explored the options around application service provider (ASP) some time ago, and found the value proposition unattractive. The ASP value proposition has been developed significantly, and the current wave of Software as a Service (SaaS) providers have established a great business model that is cost effective and a great value proposition.

     In relation to the accounting package, I pay a monthly fee, the software is maintained off site and is always current, the data is backed up and secure, the solution is good and the price is over 60% lower than traditional software.

    The solution has been available for several years, however there now seems to be a really strong trend to these types of services and the solution seems new.

    I raise this, because I am noticing that the majority of businesses are still waiting for some form of lead from government to start taking action to manage carbon. Innovators are still leading the herd in managing carbon and creating a new business model, yet they comprise about 10% of all businesses and I suspect many of these leaders will develop a significant advantage over time.

     It is interesting to note that one of the leaders in “cloud computing” Salesforce.com – the current new thing – started the business model in 1999.