Tuesday, October 18, 2016

Facebook's Workplace is a Serious SaaS Contender

For years, Microsoft has been the market leader in Enterprise collaboration software services. This has led to their crowning as Enterprise SaaS leaders. However, Facebook is set to challenge its dominance after releasing its Workplace cloud-based Enterprise Collaboration service. Facebook Workplace is the final name decided on after long being referred to as Facebook at Work.

The Microsoft Enterprise Software as a Service previously only had a rival in Salesforce. However, it unseated Salesforce’s dominance with its ambitious Office 365 product. Salesforce later bought Quip, a word processing software, to help it compete with Microsoft. However, the product has been slow to catch up given the high adoption of the Microsoft Office 365 among many enterprises.

The real long-term threat to Microsoft is Facebook. Its Workplace enterprise collaboration service could end up being a serious threat to Microsoft online productivity tools such as Sharepoint and Office 365.

Facebook may entice the customers away with its cheap pricing. While the Office 365/ Sharepoint has user subscription monthly plans of $5/$10/$20, Facebook Workplace offers its software at monthly plans of $1/$2/$3. With as low as $1 every month, you receive an unlimited photo, file and video storage. The closest equivalent of this service is Google’s Alphabet at $10/ month per user.

The only thing that is deficient with Facebook is the lack of as many apps as those found on Microsoft Office 365. Currently, it integrates the Google’s G Suite (Google integrated services) to assist in the productivity.

Facebook may be working on an app that works similarly to Quip so that it can get rid of the G Suite in the future. In the past, it dropped Google Adsense from all its developer partners.

There is a lot that is in the future of Microsoft SaaS future. The combination of its cloud-based services such as Dynamics CRM, SharePoint, and Azure have contributed tremendously to the annual revenue figures. It will take notice of the Facebook.

According to Synergy Research ERP Q2 2016 report, Collaboration software is the fastest growing department in Enterprise SaaS from ERP. Collaboration has grown by 37 percent while ERP has grown at 49 percent. Microsoft leads in Collaboration Software, but soon we may find Facebook coming in strong in the area.

The popularity of the ad blocking software has made Facebook diversify into other areas of revenue to boost its revenues. Soon we may find it engaging in CRM. It has a global network of data centers that can service any requirement for SaaS services by any size of the organization.

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