David & Goliath, Part XXIV

By | November 2, 2005

The whole online tool thing that I’ve written about in recent columns has just gotten interesting, with Microsoft entering the fray. Jason of 37 Signals comments :

No one can ignore Microsoft, but at this point they’re just talking while a lot of other folks are walking. The web-based app space isn’t heating up — it’s already been cooking for a while now.

In a chat, I asked him whether he’s as confident as he sounded:

Sure.  Our focus is always on small biz. They’re going enterprise and low end will eat into their enterprise, but enterprise won’t eat into the low end, because enterprise stuff is too complex. A lot of people on the high end really just need the low end. Companies are starting to realize the 100% solution doesn’t exist. So, instead of chasing that 100% they’re far more content (and productive) with just a little bit that works really well. That’s where we come in. Simple tools that do a few things really well.

It’ll be interesting to see what happens. Can these smaller outfits survive? Can Microsoft offer enough innovation to attract users?

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