This is where I should put in a plug for how SAP had this idea back before it was popular, yada yada.
What I think is interesting about the hosted model is how 3rd party ISV's can roll out new products or services without Salesforce.com even knowing, or caring for that matter.
Jigsaw updated their service last week with Salesforce.com integration and it's a great example to this point. Neither Salesforce nor Jigsaw had to ship new software, ensure compliance with API's through onsite testing, or worry about backward compatability. Of course, it's also important to point out that Salesforce now has to ensure that the services interfaces are stable as they upgrade their own service and Jigsaw needs to be aware of upgrades as well, so like all things in life nothing is free.
I'm not so sure that the Barney model (I love you, you love me) for application exchanges really scales all that well because as more complex apps develop they tend to leave the exchange, but it's a start. Look at sourceforge as an example of this in action, lot's of projects but the biggest and most successful projects aren't to be found. What the exchange does provide is coveted access to Salesforce.com's customer, which at the end of the day is really all that 3rd party ISV's want.
Link: Salesforce plans online software exchange | News.blog | CNET News.com.
AppExchange will let Salesforce.com customers buy and sell applications and components that run on the company's hosted platform. The idea builds on the company's Multiforce tools that let developers build new applications that expand the capabilities of Salesforce's existing products.
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