So what happens to SaaS if the internet fails?

I haven’t read any commentary on these two articles claiming that by 2010 the internet will be so congested it will start to slow. So I thought I’d throw my hat in the ring.

"Users will experience a slow, subtle degradation, so it's back to the bad old days of dial-up," Nemertes President Johna Till Johnson told USA Today. "The cool stuff that you'll want to do will be such a pain in the rear that you won't do it."

(As a by-line a bunch of nethead telco guys have been hoping and / doing their best to drive just this sort of situation for a long time)

If this does happen – and I’m not entirely sure it will – It’s an interesting paradox. Many governments and markets have regulated Telco’s to a point where they are really under the hammer financially. And now, they are being asked to fund an internet up-grade of immense proportions so that the internet (which effectively ‘ate their lunch’) can continue to work as well as it currently does. This will of course make everyone more productive (youtube being the best productivity aid by far – check the comments) and the world will be a much better place…

The degradation of the internet also has large implications on SaaS and the whole web 2.0 phenomenon. As the quote above indicates, the service experience will degrade to a point where users will walk. Let’s face it, no one ever, says ‘give it to me slower’. Sure ISV’s etc can create cute codecs to do compression, thin client could help as well, but the reality is that this kind of negates the point of mashupable Internet delivered services.

It does point to a gapping hole in the SaaS provider’s end to end service experience. It’s kind of like building a cool race car while not thinking about the terrain it actually rides over – a formula one on an off terrain track in this instance. This omission also points to a massive opportunity for those ICT companies who understand how and why you need to couple connectivity and applications together.

I’ve written before about who it could be that would disrupt the old school on prem ISV business. It looks to me like the landscape has changed again….

Anyone else have any thoughts on this? Anyone else even alarmed that this could impact their SaaS service or customers?

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