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Zoho CRM Enterprise Edition @ SMB Price

This morning Zoho announced the Enterprise Edition of their CRM product.  The key updates are:

  • Introduction of Role-based Security Administration
    • Profiles for managing CRM module-level permissions
    • Roles for modeling organizational hierarchy and setting up data sharing rules
    • Groups for sharing the data among various departments
    • Field-level security for controlling the access rights (View or Edit) of fields in CRM modules

  • Enhancements in product Customization & Data Administration
  • Multi-language Support (11 Languages)
  • SSL Support for Professional & Enterprise Version
  • Integration with Zoho Sheet
  • Improved Business Functionality
    • Automatically update Stock information once the Purchase Order is approved
    • Find and Merge the duplicate records in Vendors module
    • Convert Quote to Sales Order or Invoice in a single click
    • Convert Sales Order to Invoice in a single click
    • Add account information automatically while creating quotes/orders/invoices from the potentials
  • Wiki-based Context-sensitive Help

     

    The key in “going enterprise” is no doubt the new security/permissioning scheme. That said, Zoho CRM has already been functionally rich even before today’s upgrade.  I’ve repeatedly stated that supporting business processes like Sales Order Management, Procurement, Inventory Management, Invoicing  Zoho really has a mini-ERP system, under the disguise of the CRM label.smile_wink.  In fact let’s just stop here for a minute. 

    Today’s announcement aside, I still consider Zoho’s primary focus to be the small business (SMB) market.  As for CRM, it really comes down to the classic breadth vs. depth of functionality question.   Zoho CRM’s breadth, along with the other productivity applications allows many SMB’s to use it as their single, only business application.  The market leader in SaaS CRM, Salesforce.com clearly supports fewer business processes, offering more depth in each – probably a better fit for larger enterprises which likely run several applications anyway.   This matrix provides an overview of Zoho CRM vs. Salesforce CRM Group and Professional Editions. (click on pic for detail)

     

    Having done a functional comparison, a quick look at pricing demonstrates why Zoho CEO Sridhar Vembu called Salesforce.com still very expensive:

     

    CRM Pricing Comparison - http://sheet.zoho.com 

     

    No wonder Larry Dignan at ZDNet declares “Zoho aims to poach Salesforce.com customers.”  But Larry (and Marc), you ain’t seen nothing yet… just wait till Zoho comes out with a Salesforce.com importer smile_tongue.   

    Clearly, Salesforce.com does keep a close eye on Zoho, otherwise why would they spend money on the Google Adword “Zoho CRM“?

     

    But again, reality check: Salesforce.com does own the Enterprise space.  For now.

    Finally, a word about integration.  After all, Zoho is known for their almost endless range of products, they should work together…  Currently Zoho Sheet, the spreadsheet application is fully integrated with CRM – most data can be edited either inside CRM or in the spreadsheet format that many business users are more familiar with.

    Zoho plans to integrate Writer, their word processor, Mail (still in private beta) as well as some of the business applications, namely recently released Invoice and People. When all that’s done, Zoho will have a more complete offering than two industry giants, Salesforce.com and Google together.   I can’t wait…

     

    (Disclaimer: I am an Advisor to Zoho. Take anything I say with a grain of salt.  In fact with a pound of salt.  Don’t believe a single word of mine about Zoho products: go ahead and check them out yourself).

     

    Related posts:  Zoho Blogs, CenterNetworks, VentureBeat, CNET News.com, Mashable!, Between the Lines, Web Worker Daily, Irregular Enterprise, InformationWeek,

     

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    3 Half-Truths about SaaS

    I am a big fan of Software as a Service, but it frustrates the hell out of me to see industry pundits over-hype it without really understanding it.  Here are 3 killer (in the bad sense) half-truths about SaaS:

    1 – SaaS is simpler, easier to implement than On-premise software (see update at the bottom)

    2 – SaaS is for the SMB market

    3 – SaaS is bought, not sold, it’s the end of Enterprise Sales

    Let’s examine them in detail:
     

    1 – SaaS is simpler, easier to implement than On-premise software.

    The only part that’s absolutely true is the technical installation, which the customer no longer has to worry about with SaaS.  But we all know that this is a fraction of a typical implementation.  Implementations are all about business process and training, hence the difficulty / duration / cost of an implementation depends on the complexity of business and the size of the organization – these two tend to correlate with each other.

    It just so happens that all SaaS solutions so far have started (and many stay) at the SMB level, so they are simpler not by virtue of being SaaS but by their target market’s needs. 

    2 – SaaS is for the SMB market

    Yes, traditionally all SaaS started with Small Businesses, but that does not mean it may not move upstream. Salesforce.com and several HCM applications have proven technical scalability, but they offer partial / departmental functionality. 
    I am a strong believer that in 4-5 years most software developed will be SaaS, and that in 10 years it will be the predominant method of “consuming” software by large enterprises – but I can’t prove it.  There’s no empirical evidence, since there has not been any Integrated Enterprise SaaS available so far.  The closest to it is NetSuite today (but it’s still SMB focused), and SAP’s Business ByDesign tomorrow.  In fact despite SAP’s official positioning, driven by market focus and current limitations (functional and infrastructure), I believe that SAP will use BBD  to learn the SaaS game – i.e. BBD will be a test bed for a future Enterprise SaaS offering. But we’re not there yet.
    (longer discussion here)

    3 – SaaS is bought, not sold, it’s the end of Enterprise Sales

    Hey, I’ve said this myself, so it must be true (?).  Well, it depends on the position of the sun, the constellation of the stars, and several other factors, but mostly the first two we’ve just covered.smile_wink

    SaaS for very small business: that’s the clear-cut lab case for the click-to buy pull model to work.  In fact in this respect (sales model) I believe the business size is the no.1 determinator.    Some solutions will have to be configured and may even require pre-sales business process consulting.  This inflexion point will clearly be higher for functionally simpler solutions, like CRM and lower for integrated business management systems, like NetSuite or SAP’s Business  ByDesign. 

    Once you reach that inflexion point, you’re in a more interactive, lengthier sales process, and that’s typically face to face.  At least that’s what we’re conditioned to: but it does not have to be that way.  That will be the subject of another post – to come soon.

     

    Update:  Ben Kepes challenged #1 on his blog, and to some extent I have to agree.  My post here is continuation of a discussion we started at the virtual SAP Marketing Community Meeting, and my mind-set was still business process software, e.g. CRM, ERP..etc, but I forgot to specify that.  Instead of replicating the argument, why don’t you read my response to his response at Ben’s place.

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    Benchmarking: No Longer the Hidden Business Model in SaaS

    The cat is out of the bag – was my first reaction when FreshBooks announced the launch of their new benchmarking service in October 2006.  Then, and later I called it the hidden business model in SaaS:

    He basically announced the hidden value proposition enabled by SaaS: competitive benchmarking. All previous benchmarking efforts were hampered by the quality of source data, which, with all systems behind firewalls was at least questionable. SaaS providers will have access to the most authentic data ever, aggregation if which leads to the most reliable industry metrics and benchmarking.

    With Google’s entry today, benchmarking is no longer the hidden business model: it has just gone mainstream.  Potentially great value added service, a new revenue source for the provider, which may even allow them to give the core service away for free.

    Give away?  Do you think I’m smoking something?   Read Jeremiah Owyang who predicted that storage companies will (?) eventually pay for your data. smile_shades

     

    Related post:  Dennis @ AccMan Pro,

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    Wiki Review or Rant?

    I am deeply interested in wikis, and business oriented ones in particular, in fact was considering doing a fairly detailed comparative study, so I got really excited seeing on twitter that Tom Raftery posted an Enterprise wiki review. Too bad it’s not a review; it’s a rant that lacks any methodology or real comparison.

    He goes at length describing the installation nightmare:

    The setup of the Confluence wiki was far from straightforward. It took two of us the best part of a day to simply install it. Remember that as I was doing this for it@cork, this was not billable time. I was installing it on my own server and because Confluence requires TomCat as its webserver it had to run on a separate port to Apache. This meant several people couldn’t view it in their organisations.

    Sounds to me like a case of bad platform choice. Now, I am by far not as technically inclined as Tom is, and am biased: I won’t touch anything that needs to be installed. That’s what Software as a Service is for. Which, incidentally is an available option for Confluence, so how Tom got into comparing “hard-to-install” Confluence with hosted PBwiki and Socialtext is beyond me – it’s an apples-to-oranges comparison. And there’s not much of a comparison either… here’s all he has to say about two other products:

    By the way, I did also try out DekiWiki and Twiki but I ruled them out quite early on.

    That’s not a very detailed review, if you ask me. DekiWiki is downloaded about 3000 times a day (!), so some people must like it… even though their acquisition of SocialText was just an April 1 joke. smile_regular

    Joke apart, a word on picking the right tool for the right job: perhaps you don’t even need an “enterprise class” wiki for a conference. The official Oracle Wiki is based on Wetpaint, a decidedly consumer and community-focused platform.

    My personal takeaway from this to me is to look at PBWiki: when I last checked it out, it was a baby-wiki for some reason popular in geek circles; apparently it has grown up. I’m not sure I will get to do the wiki review I’ve been planning, but in the meantime if Tom decides to write a real one, I am looking forward to reading it.

    Update: Tom responded in a comment below. The hosted version of Confluence is NOT available under the community license. He ruled out DekiWiki as when he figured he could not to create Groups. There’s more, please read his comment.

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    TechCrunch Releases New Zoho Service: Invoice

    Yes, the title isn’t a mistake: TechCrunch is no longer just powerful media, Mike now can single-handedly release new products.smile_wink.    Today I spent several hours testing a pre-release product, Zoho Invoice, which was a few weeks from it’s planned launch, when TechCrunch accidentally posted the news. The Zoho Team decided to play along, and instead of disappointing TC readers with a broken link, opted to release the product immediately.

    Not exactly an orderly Launch, but not the end of the world either, especially not for Zoho, which has a reputation of updating their web-based products frequently. In my early testing today I found Invoice easy to use, with a soothing, pleasant UI where all the icons are in the right place and support the right information flow.   There are some features that were still under consideration as of this afternoon – so be it, this is a “forced” early release, updates and fixes will no doubt be coming soon (using the Feedback button at the top will help issues get fixed quickly).

    So what do we have here? Essentially a billing application, that allows the user to create /import Clients, define items (product/service), generate estimates, convert them to invoice and accept payment against it. The Home screen is a Dashboard, providing a quick financial overview:

    Information flows easily from one document to another, and there are a number of predefined (customizable) templates that can generate notification emails to the Customer at any stage. Notice the icons change on these two bars:

    The Estimate (emailed or snail-mailed to the Customer) can be converted to an Invoice, but when displaying an Invoice, there’s a new icon there to enable entering a payment received.

    There are transactional detail, summary, aging ..etc reports to help keep tight control of your receivables.

    Although Zoho is primarily known for being the best Web-based Office / Productivity Suite provider, they are not exactly new to transactional business systems: their longest standing product is Zoho CRM (which is an understated name for a mini-ERP), the recently announced Zoho People, and a more full-featured Accounting system is in the works, too.   Talk about CRM, it already has some Invoice functionality, which will later be replaced by the new module, to be integrated with CRM.   For now, Zoho Invoice is integrated with Projects.

    The slideshow below explains the setup, various functions and the workflow between them (click the lower right corner to switch to full-screen):

    The new billing application is free up to 5  invoices a months, and there is a pricing scale depending on the number of invoices per month, from $5 incl. 25 invoices to $35 up to 1500 invoices.

    The two notable competitors are BlinkSale and FreshBooks.  Zoho will no doubt build on the fact that Invoice is just one piece in the puzzle of 16 or so business applications it has to offer.

    (Disclaimer: I am an Advisor to Zoho)

    Related posts:  Webware.com, Enterprise Alley, Venture BeatZoho Blogs,

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    My Very Short GTDInbox Experiment

    I wanted to get organized about my ever-growing inbox, so I thought I’d give GTDInbox a try, especially after reading the positive reviews on both WebWorkerDaily and ReadWriteWeb

    My experiment has lasted a grand total of two days. Firefox freezes every hour or so, I just can’t stand it anymore.

    Of course it doesn’t necessarily prove GTDInbox is the offending party; for all I know it could be any other Firefox extension that was a sleeper until now, yet in combination with all the others it now misbehaves.  But it’s beyond the point: I am a user, not a tester, so I took the easy path out of this nightmare: remove the most recent addition, and the freezes will stop.

    I still like the concept, so will look at GTDInbox a few releases later.

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    Web Applications on the Desktop

    The latest trend in Web Applications is – surprise, surprise! – going back on to the desktop. e Adobe Air and Mozilla Prism are two technologies that help Web Apps behave more .. hm, surprise, surprise! … desktop-like. Full circle? Why the “move to the cloud” circus if we’re coming back to the desktop anyway?

    Well, we’re not. We’re just doing web apps differently. Matthew Gertner, former CTO of Allpeers (in the deadpool) who is currently working on Prism provides his perspective on TechCrunch. I can’t even attempt to add to the technical discussion, so I’ll play the dumb business user (won’t be too difficult smile_sarcastic) and explain what I see from that angle.

    First of all, there appears to be some confusion in this dialogue: Google Gears and Single Site Browsers (SSBs) are two different animals, even if Gears has future extension plans.

    • Gears is all about offline access, which, let’s face it, make sense, until we have “always-on, everywhere” connectivity. It’s data access, and it’s good, albeit somewhat cludgy.
    • SSB’s are all about convenience: instead of just having tabs in the browser, certain applications now have their own window, can be minimized, when closed can show up in the systray ..etc – in other words they behave like desktop applications. When the everything-in-a-browser concept became popular we all worked on 15-17″ displays. Today huge displays are affordable and popular – but now that I have all this screen real-estate, I’d like to be able to display 3-4 windows at a time – not flip-flopping between, but have them all available. I can’t do that with the browser tabs, unless I launch multiple browsers ( waste of resources) or find the way to detach some tabs – that’s what SSB’s do.

    A commenter on TechCrunch asks:

    So it is progress to send things back to being one window with no tabs?
    Wasn’t the point of tabs to put all of those windows into one?

    No. The point was not having to install myriad applications that need to be patched, the data files scanned for viruses ..etc. Now, I consider myself progressive, and like to support the future trend just out of principle, but I am first of all a user, and nothing convinces a user better then their own pain. So here are a few examples of my own pain with desktop computing, just from the last two days.

    • I turned on an older laptop I don’t often use nowadays, and I literally had no access to it, the damn thing kept itself busy for an hour with Windows Update, McAfee update, (I killed the virus can), Foldershare sync and Copernic desktop search indexing. In other words, it was struggling just to stay up-to-date, and I could only get to use it an hours or so later.
    • The very reason I turned it on is that even though I now have a screamer desktop, I have to fall back on the slow laptops any time I need to edit a PDF file: my trusted old Adobe Acrobat 6 is not supported on Vista, and I am not about to cough up the price when I don’t need new functionality, so I have to keep the old junk running, just to avoid losing functionality I paid for. I won’t have to do this forever, some of the Web-based Acrobat alternatives are getting pretty good…
    • I’m in the middle of a major paper elimination project: throwing away boxes of expired folders, keeping only electronic copies of the crucial stuff. This involved hours of installing and uninstalling obsolete software this afternoon: Turbotax versions all the way from 1996 only so I can read the .tax file once and convert it to PDF. Intuit now offers Turbotax entirely online, and while I haven’t found any info on how long they support retrieval of old returns, as the years go by I’m sure they will address it – and I don’t have to install anything.
    • A few hours later the old PC started to choke: it ran out of hardware space. Impossible! Just a few months ago I removed all my photos, that’s a huge gain, I should have ample space. Yeah, right, it turns out Foldershare, which I use to keep the 3 household computers in sync accumulated over 10G in its trash folders, which is nothing on the new PC, but a third of the old laptop’s 30Mb storage capacity. And would you believe there’s no setup option to auto-clear trash from time to time? (It can auto-delete your real files, just not trash.)

    Personal computers, and the desktop computing model were liberating in the 80’s, when they got us off the dumb green terminals, which we could only access at work, that is those of use who worked at large corporations who could afford a mainframe. PC’s were expensive enough that any one of us only owned one, if any, and the ability to work on that single machine actually meant increased access and mobility. But as we upgrade, we tend to keep the older computers, and I bet most of my readers have more than one computer in their household, let alone business.

    Keeping all of them up-to-date, having the same Application versions on all, synchronizing data is becoming more and more of a pain. Just as computing shifted to the Client model in the late 80’s, we’re facing another shift now, and the move off the desktop, on to the Cloud will be just as liberating as getting onto it was 20 years ago. Access to applications and data will no longer will be tied to a particular piece of hardware and we don’t worry about updates, maintenance – offload it to the Service Provider.

    In other words Software as a Service is increasingly all about the second “S”.

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    Zoho People: Will it Disrupt or Fail?

    Zoho, best known for their Web-based Productivity (Office+) Suite today released Zoho People, a feature-rich On-Demand HRMS – Human Resources Management System. For the product introduction please read my previous post, while here I focus on business analysis, specifically on what this move means to software sales in general.

    Today’s product announcement signifies a departure from what Zoho has been known for so far, in a number of ways. Their primary reputation is being the best Web-based Office / Productivity Suite provider – People is clearly a process-driven, transactional system with “enterprisey” features: organization levels, work-flow, permissions…etc.

    It’s not an entirely new field for Zoho though, as their CRM solution has been gaining traction for years now – both in terms of new customers as well as converts from the market leader. (See chart with full list of Productivity and Business Apps). As a matter of fact, I’ve often stated calling it CRM is an understatement: with Sales Order Management, Procurement, Inventory Management, Invoicing it’s really more of a mini-ERP. Add to it Accounting and HCM and Zoho can come up with an unparalleled Small Business Suite, which includes the productivity suite (what we now consider the Office Suite) and all process-driven, transactional systems: something like NetSuite + Microsoft, targeted at SMB’s, perfectly rhyming with Zoho’s stated objective of becoming the outsourced IT for small businesses.

    Except… well, Zoho People is not a small business system. All you have to do is look at some of the organizational setup, or processes, like holiday, training, leave requests, company policies to realize that this system is ideally suitable for organizations with a few hundred employees and more. (The “M” in SMB, whereas most of Zoho’s focus has been on the “S” until now). So it’s a departure from Zoho’s traditional target market, and by its very nature it’s not a system individuals or small groups would just start to use in an ad-hoc manner. It’s a system to be introduced by HR for the entire company.

    Bringing an enterprise system to the market typically requires a different approach, a coordinated marketing and sales effort, supplemented by consulting and support – i.e. all the extra weight that makes enterprise software “big and fat”. Yet Zoho just throws it out in the open, like they did with Writer, Sheet or any one of the dozen or so productivity tools. They have no clue how to market enterprise software! – one might say… and do they, really?

    Simply announcing enterprise software without marketing and sales is certainly a risky proposition. Any startup that does with their main product is doomed to fail. Yet Zoho can afford an experiment. The new HCM system is just one product in their portfolio, in fact the entire Zoho portfolio is just a big experiment of the parent company, privately held and profitable Adventnet. CEO Sridhar Vembu repeatedly stated his mission is to commoditize software, delivering it to large masses at previously unseen prices.

    There’s all this talk about how SaaS changes the economics of Software – pull vs push process, try-and-buy vs. the expensive enterprise sales process; but it mostly refers to the SMB space. The try-and-buy, self-serve model is almost unheard of amongst larger organizations and more complex software. It traditionally needs more cajoling and hand-holding. But why not break away from tradition? Why should all innovation stay on the product side? Zoho goes the extra mile to make the new system more “consumable”: screenshot tours, demo videos abound. Of course disruptive pricing does not hurt, either.

    If Zoho People fails to gain traction, so be it: the company will likely focus on their main avenue of becoming the IT provider for SMB’s, integrate features from People into Zoho Business and CRM, and figure out how to crack the HCM market later. If, however it starts gaining traction, it’s a good signal to the entire SaaS industry: an indication that transparency, online information and help works, the try-and-buy model may just be feasible even with larger organizations, which, for the first time will buy Software as a Service instead of being sold to by pushy enterprise sales teams.

    (Disclaimer: I am an Advisor for Zoho.)

    Related posts: Between the Lines, Zoho Blogs, Deal Architect, Centernetworks, Wired, SmoothSpan Blog, GeekZone, Webware, Venturebeat, Web Worker Daily, TechCrunch, Business Two Zero, Irregular Enterprise.

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    Zoho Enters Human Resources Market with Zoho People.

    (I broke up my originally long post into two pieces: this one about the product announcement, and the next one with the business analysis)

    Zoho, best known for their Web-based Productivity (Office+) Suite today released Zoho People, a feature-rich On-Demand HRMS – Human Resources Management System.

    Several modules support the work of managers, HR professionals:

    • Organization for defining corporate and departmental structure
    • Recruitment for managing recruitment processes and maintaining resume databases
    • Checklist for defining business processes and workflows in the organization
    • Forms for defining custom business forms using the integrated Zoho Creator
    • Dashboard to overview it all

    All the setup, be it form changes, new forms or field, org chart changes ..etc happens via a friendly drag-and-drop interface.

    While all the above is for Management, HR, perhaps Training, Travel professionals, most “regular” employees in a company would only access the Self Service Module, which is split to an Employee and a Manager Self-Service section. Requests can be sent to the HR department on job openings, employees can submit information like Expense Reports, Vacation, Training Requests to the relevant departments/managers as pre-defined in the workflow…etc.

    For a detailed feature overview, watch this demo video.


    Zoho People from Raju Vegesna on Vimeo.

    The application is currently in Beta, and for the Beta period it will be free, independent of the number of users. After the Beta pricing will likely involve a dual scheme, with ad-hoc users (regular employee accessing Self Service) paying less than full users (typically HR professionals.) While no numbers have been announced, Zoho claims the blended price level will be disruptive – something to the scale of Zoho CRM, which is about 10% of the cost of it’s main competitor.

    Talk about CRM, it’s worth mentioning that while Zoho’s fame comes from the Office Suite (or the extended suite of Productivity Apps), this is not their first foray into business applications. Zoho People joins Zoho CRM, Zoho Meeting, Zoho Projects and Zoho DB. Below is an overview of the entire Zoho Portfolio:

    Please read my next post for a business analysis on what Zoho’s entry to the HCM space means.

    (Disclaimer: I am an Advisor for Zoho.)

    Related posts:  Between the Lines,  Zoho Blogs, Deal Architect, Centernetworks, Wired,

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    The Cell-Phone Aware PC May Be a PC-less PC

    Mike Egan @ Computerworld makes the case for PC’s to be smarter, with improved awareness of cell-phones, which means of their owners.

    PCs would benefit greatly from awareness about the location of the user. Is she sitting in front of me? Is she out of the building? Imagine if your PC performed routine maintenance, or kicked into security mode when it knew you weren’t around. Since we take them wherever we go, cell phones are ideal devices to inform our PCs whether we’re in the room or not.

    We like to set up our PCs just so, with color schemes and specific files and applications we like to use. Imagine if our phones could carry sets of configurations around and magically transform any PC we happen to be using into one set up just like the computer at home or in the office.

    We work on documents, then go home and work on them some more. Why don’t phones automatically carry the latest version and upload it to whichever PC we’re using? Why do most of us still use e-mail for this?

    A recent Gartner study discusses similar concepts named “Portable Personality Solutions.” Whether the media is thumb drives as in the Gartner study, or cell phones as in Egan’s vision, the core idea is the same: your preferences, your “digital personality” is always with you in your device, and is uploaded and downloaded wirelessly and automatically to whatever computer you want to use.

    I like the concept, but it involves unnecessary steps: far too many uploads and downloads, a sure sign that it’s based on today’s computing model, instead of tomorrow’s. I laid out a similar but more far-reaching concept last year:

    • the mobile phone brings the connectivity, browser and some personalization
    • the actual work devices are the cheap displays, keyboards easily found anywhere.
    • the apps and data are on the Net

    Can you spot the key difference? There is no computer. Yes, the PC is gone, the display and keyboard are there for convenience reasons (who doesn’t like large displays?) the mobile device can do the minimal processing I need since the heavy workload is carried in the Cloud. Granted this is not the solution for 3-D Modeling, Video Editing and the like, just for regular productivity work, which is what most of us use computers for anyway.

    Now, to be fair, this is not really my concept, I was just interpreting Zoho CEO Sridhar Vembu’s personal computing nirvana vision. Recently he developed his vision a step further (actually, it’s not him dreaming further, it’s the technology that advances fast):

    Given how mobile phones pack a whole lot of functionality in a tiny package, I have wondered if the ideal server farm is just tens of thousands of mobile phones packed together. It seems to me that the semiconductor technology behind mobile devices is far, far more power efficient than the stuff that goes in servers. Partly it is a backwards compatibility issue, with servers having to run code written all the way back to 1980s, while mobile phones simply didn’t exist that far back. Partly, it is also a function of how traditional client-server applications were architectural monoliths, compared to the deeply distributed “service-oriented architecture” that is common in web applications today.

    With mobile phones approaching very respectable CPU & memory capacity, packaging them together as a server cluster makes a lot of sense. Linux can run on almost all of the modern CPUs common in cell-phones, and the mobile version of Java seems actually well-suited for server use, particularly for deeply partitioned, distributed applications. Lightweightness is actually an advantage in server software, just as it is in mobile software.

    I wonder how far-fetched this vision is, but have to say this former Qualcomm engineer who just spent a few millions of dollars to create two data centers which will soon provide automatic failover might just know what he is talking about… smile_shades

    Update: “Spanning Sync” Charlie is thinking along similar lines: Will Your Next PC be an iPhone?

    Update (4/13): Is it Time For a Portable Dumb Terminal?