This is why big data is the sweet spot for SaaS

Grazed from GigaOM. Author: Derrick Harris.

People often ask me where the smart money is in big data. I often tell them that’s a foolish question, because I’m not an investor — but if I were, I’d look to software as a service. There are two primary reasons why, the first of which is obvious: Companies are tired of managing applications and infrastructure, so something that optimizes a common task using techniques they don’t know on servers they don’t have to manage is probably compelling. It’s called cloud computing.

The other reason is that the big part of big data really is important if you want to get a really clear picture of what’s happening in any given space. While no single end-user company can (or likely would) address search-engine optimization, for example, by building a massive store comprised of data from hundreds or thousands of companies as well as the entire web, a cloud service dedicated to that specific task can…

From web security to systems management, we’re already seeing how centralized data stores provide SaaS companies a broad view into what’s happening that can then be filtered down to serve each individual customer’s specific situation. BloomReach, a SaaS startup that helps companies optimize web-page content, is another good example of this principle in action…

Read more from the source @ http://gigaom.com/2013/05/14/this-is-why-big-data-is-the-sweet-spot-for-saas/