Marketing & Innovation

Zoho CEO predicts cloud will be the end of offline software

Will the rise of cloud computing mean that the end of offline software is near? A great deal has been already said on this blog and elsewhere on the subject of cloud computing but our meeting with Raju Vegesna, chief evangelist for Zoho and Sridhar Vembu, the firm’s founder and CEO was very refreshing and led to some very interesting thoughts and visions. Zoho is a suite of applications that run over the Internet – in cloud mode – but what makes the suite stand out is that it is encompassing all sorts of domains, not just horizontal (CRM for instance) but also vertical.

Zoho CEO predicts the end of offline software

Zoho CEO predicts the end of offline software
Zoho CEO predicts the end of offline software

Will the cloud computing industry take over from the offline industry and when?

The main question which was on everyone’s lips this morning was: “Will applications in the cloud be a big thing or not, eventually, or just another of these missed opportunities that have been so numerous in the past of the IT market?”

Sridhar Vembu’s response came loud and clear in a visionary statement which was most striking: “The cloud computing software industry will have the best of the offline industry but it will take 10 years” he said. He went on describing the Oriental spirit of the firm and how his vision was in the long term rather than “flipping it” (i.e. reselling quickly in Silicon Valley parlance).

But “Zoho is more into the long term” Vembu added. “Zoho is not looking for investment”, “it has no big ambition to take over the world, you don’t have to be a Google or a Microsoft to succeed”.

This was a very refreshing and wise view. And he went on: “I don’t believe in a Microsoft monopoly in the cloud. There will be many actors,” he said. He also stated that “3 million users is enough for [them] to live!” and that “during last year’s recession, [they] grew 100%.”

The revenue made by the private company cannot be disclosed but Zoho is making a profit and doesn’t have any debts. Yet, it refused publically takeover bids from and wants to remain independent although he may also be looking for partnerships.

For a complete script of the June 1 presentation at Zoho check the Orange Business Live blog

Yann Gourvennec
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Yann Gourvennec

Yann Gourvennec created in 1996. He is a speaker and author of 6 books. In 2014 he went from intrapreneur to entrepreneur, when he created his digital marketing agency. ———————————————————— Yann Gourvennec a créé en 1996. Il est conférencier et auteur de 6 livres. En 2014, il est passé d'intrapreneur à entrepreneur en créant son agence de marketing numérique. More »

One Comment

  1. The American Greeting’s Website is another perfect example of how offline software can be displaced by a purely online business model. Why buy boxed software to make greeting cards when you can access the same application online? Why drive to greeting card store when the store is already in your house?
    Is all offline software going to shift to the cloud? No, but I think all those that can, will – as soon software publishers realize that it is a much smarter business model.

    1. thanks for your comment. I agree that all software might not shift to the cloud. Well, at the end of the day it’s also a matter of making ubiquitous computing happen and we all know that we are not there yet, although we are not that far either. When ubiquitous computing is definitely made available, then this online software wave is just going to be massive and switching PCs or MACs won’t ever be a problem any more for you to find your data.

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