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Web 2.0

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Web 2.0
Situation Analysis
Background information With the developing of Web 2.0, more and more investors tried to focus on the usage of Internet. Unlike the traditional software, more kinds of operations can be executed based on Internet, such as Open Source Software (OSS), Cloud Computing, Software as a service (SaaS) and Virtualization. SaaS is a new type of software applied mode which grows up in the 21th century. It has the similar meaning with the terms ASP (application service provider) or HSV (hosted software vendor). Consumers can access and use the software through Internet, usually by simply starting up a Web browser. Clients rent but not own the software what they demanded from the software vendors for the certain quantity and period without management, maintain and limitation of hardware as the conventional software. This new type of software brings some fresh air to the business, especially for these SMEs. Their advantages, such as better economics, mobility, collaboration, and convenience, would provide great opportunities to the small business, which means that they don’t need to cost a lot on servers, software, upgrades, and maintaining and managing all the fixes. According to the Gartner industry report, employing CRM through a SaaS model could create cost saving between 25 to 40 percent from reduced application expenses and integration, and from the feedback of the earlier users, data could be more secure on the cloud through SAS70-compliant data centers with biometric security and other protections. The founders of AppDirect, Daniel Saks and Nicolas Desmarais, noticed the great opportunity of the SaaS model for small businesses. They got the initial idea from the Web 2.0 conference in San Francisco in March of 2009 about the development of crowd sourcing. Because of their own background before, they always had enough passion to help small business. So they established AppDirect to offer the new model of on-line service to reduce the pressure

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