The basic economic values comes from SaaS are cost savings and expertise. SaaS will create an environment for people to go towards Functional Standardization. What I mean by functional standardization is that for a business function you won’t require vendor specific end user training like in today world if I know how to drive a Mercedes than I know how to drive a Honda accord. Also, we will see that lots of consolidation activity for the tasks that are cost of doing business not adding any competitive advantage for the core business.

You will find lot of product services will be created by Horizontal Integration i.e. collaborating with multiple players in the industry.

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