In his usual insightful way, Phil Wainewright discusses how some of the new PaaS (Platform as a Service) vendors are tugging at the pricing of SaaS. I have no trouble agreeing that this is going on and that with growth the SaaS market (and its many variations and extensions) was inevitaby going to reprice.
However, I'm pretty sure that some of this may be more of a new entrants exploring a new business model (and trying to claim their market share) issue and less of us understanding the end game already. As I said in a comnent,
"I'm concerned that we may be going through a bit of the early days of the ASP market with PaaS, with some aggressive players offering prices they like for marketing purposes but may not be able to sustain. PaaS should cost a lot less than SaaS and some SaaS may cost too much, but please remember that you are buying the application and its support, not just some iron to run it on. That's a major difference and deserves differential pricing. "
Many of those puffy clouds and platforms (it's hard to tell them apart) are going to be great resources for ISVs and IT departments, but they have to provide enough service to their customers and make enough money for their shareholders to keep themselves in business, too.
Too much commoditization (especially before we really understand small things like what customer expectations will be and what the cost of doing business could be) might not be a good thing.