Listen: Barksdale, Adobe, Official discussed on The Twenty Minute VC
"Hundred one hundred fifty two hundred more different sass apps. I probably have a bunch of thoughts on this topic. I i think the first is there's a famous barksdale quote where there's two ways to make money bundling an unbundling and i think for the past ten years is kind of being an unbundling of entre soffer and v. one sas and is being this this notion of best of breed and i think you've ended up that sort of combined with the funding environment which i think is prolific you ended up where they think just sas tools rules that are just nature and nature and as a result i meet companies and opportunities that i think are very clearly features of something larger and there may be charging a dollar alerts <unk> per month or two dollars employees month or something like that. I think it will be a correction like often. In the early days of a mark you'll see this proliferation of different opportunities and then as the market progresses you'll see consolidation so i think first and foremost there will be a consolidation of many of these different saps chew. I think there will be incumbents that see an opportunity virginity to better integrate. These things together entered having all in one solution. A good example of this is notion which i think markets itself is kind of an all in one workplace is is to replace multiple different sas tools and i think the results are just going to be a bunch of sort of meta sass apps which are either helping to manage all the different sass apps you you have. I think there is still an interesting opportunity for sort of sas app store time evolves from an existing sas platform not just a standalone stats doubts apps store and i think there's going to be as the market matures a convergence a consolidation and i think there is going to be <hes> re bundling a lot of this of this this functionality in a few key players. Can i ask what level g._t. Mean comes lead to be for this kind of consolidation to really take place in the industry. It's a good question. They're kind of chu shoe levels of it. One is probably end up being a handful of anchor products. Maybe by vertical. If you think about adobe for instance they have historically really owned the creative community or sales says obviously owned t._m. In sales and so i can imagine a handful of players getting more and more weight in probably a particular functional verticals and then either building the features of other sass apps integrating them into their own offering or just developing a market cap and cashflow to be able to acquire other things integrate them together but these things take time to play out. I think salesforce is probably fifteen to twenty years old at this point and maybe maybe only in the past five to eight years. I think has been really adding more and more things to it. Sparked folio sue printing in terms of how landscape evolves and changes. It's the you said to me. Before so the notion of sassoon the contract will fade. What did you mean by that. In terms of changing landscape perspective i think the initial official term was intended to sort of distinguish it from on premise software and there was a time where it was perhaps novel that you would offer cloud hosted software with the subscription revenue models and every so often i will meet a company that is also offering an on premise solution and every so often i mean very rarely but every so often i might meet a company that only doing on premise software usually it's sort of like the banking industry but at this point is such the norm that i think it is effectively synonymous with it software onto the staff is software and software has being business offering has existed for forty years and i think at this point is just business software. I totally agree with you on bad when we dive deeper now analyze petits suggests can of the presence of data mos.."