turning to Co-Production

An interesting take on the move towards co-production by that want to let customers build their own systems.

The company, seen as a leader in the movement toward so-called software as a service applications, is making a bet on a new development system–called Multiforce–that lets partners and customers custom-tailor the software and build their own services.

[This] could prove a savvy move if companies can quickly build additional tools that add value to Salesforce’s products.

specifically because they have special industry knowledge:

the idea that companies with deep industry knowledge will have more success creating their own specialized programs than Salesforce could ever put together. […] Salesforce is betting customers, and more importantly ISVs, will clamor to build their own applications.

Interesting to watch will be how the business model works out:

“Salesforce still needs to iron out the business model, and it must give developers enough of a revenue opportunity while getting something for themselves,” said Sheryl Kingstone, analyst with Boston-based Yankee Group.


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