Both Google and SaaS (Software as a Service) pioneer Salesforce.com continue to be financial successes, so expect to see more and more companies follow suit and begin distributing all sorts of software to customers over the web, rather than using the traditional route to market of selling it in packages.

Both Google and SaaS (Software as a Service) pioneer Salesforce.com continue to be financial successes, so expect to see more and more companies follow suit and begin distributing all sorts of software to customers over the web, rather than using the traditional route to market of selling it in packages.

Microsoft may soon be joining the fray: in fact, it’s steadily building its web-based service business under the direction of chief software architect Ray Ozzie.

Indeed, many believe the long-awaited Vista operating system will be the last packaged-software version of Windows and Microsoft will offer future versions over the internet instead.

In 2007, keep an eye out for more SaaS offerings from other traditional players as well, including Oracle and SAP AG.