SaaS is a great technical model that can save money, increase efficiency, scale-up fast etc etc. But is it a viable business methodology?. Does it make money for the owner who offer this service. according CEOs of many traditional software companies like Oracle, SAP, and Microsoft SaaS doesn’t make money meaning big margins and huge profits. Even though all these companies do have their own SaaS applications and strategy in place.
Health care and Medical practice on the other hand is a different place. And that is what Ravi Sohal, CEO of remakinghealthcare.com thinks based on his own experience Healthcare Internet Business Models Don’t Scale that easily. And I think his argument is spot on
While I agree to his arguments there are many software suppliers that services only healthcare and medical markets for exmaple Pharmacy One source which claims to be Healthcare’s #1 Software-as-a-Service (SaaS) provider. And yes its true that most of all such successful companies fall into one catagory- software vendors allbeit slightly different to the traditional ones