Apprenda, a company that I’ve been following for some time has now emerged from stealth mode. They created SaaSBlogs which is managed by the founders of Apprenda and it just so happens to be timely because this week we kicked off a series on how companies can create economic value and competitive advantage with their SaaS model.

What is Apprenda acquisition?

The Apprenda Acquisition SaaSGrid is a potential game-changer for Platform-as-a-Service (PaaS) because it allows you to take your single-tenant software and plug it into their Web services. This then makes the application multi-tenant, which was not possible before. We’ll talk more about the Apprenda acquisition here.

When a CEO of a SaaS company states that in most cases, their application will be more efficient than native multi-tenancy, they are betting their reputation on it. Click To Tweet

I personally believe storage and processing costs do not matter because the real cost advantage comes from aggregating customers onto one infrastructure rather than 30% higher computing efficiency.

In the Apprenda acquisition, as PaaS becomes more of a market, SaaS vendors will need to focus on product differentiation and lowering Apprenda acquisition costs.

SaaS vendors will need to focus on product differentiation and lowering Apprenda acquisition costs. Click To Tweet

Something I personally believe is only good business because cost advantages never last. In my article “Top Ten Do’s and Don’ts for Successful Software as a Service” I argue that the technology cost advantage commoditizes software markets; something you must achieve in order to play this game but it does not guarantee victory without proficiency at mass customization or driving down Apprenda acquisition costs.

That’s it for the Apprenda acquisition!