Service Oriented Architecture could introduce a new dimension to the whole business of Software Services. SOA has the potential to changes the idea of Total Cost Of Ownership for Software as companies no longer has to actually install and run their applications on site or host them with a Hosting Service provider, but simply subscribe to one or more of these services on Subscription basis.

 

Now, Software companies will not be actually selling software but actually the service where as the Service Consumer has the liberty to always change mind and pick another company which provides the same service with more value addition, better functionality and technology. This is nothing new but SaaS.

 

This is like having a mobile phone and picking a Mobile Services provider based on Rates, Services, and Availability of Service. If one is not happy with the current Mobile Service Provider he can always look for another.

 

A Service consumer could develop and run certain services in house while it might decide to subscribe with another party (Typically Software Company) for certain other service. Now it’s up to the Software Company to keep innovating and improving the services it provides to its clients in order to keep its ‘Subscriber base’ or else loose out on competition.