The shift to SaaS applications built on SaaS is a much more thoughtful shift than the move from on-premise applications to SaaS applications. The software industry have started displaying characteristics that imitate the supply chains and service layering that are commonplace in other industries like transportation, financial services, insurance, food processing, etc. A simple set of categories like applications, middleware and infrastructure no longer represents the reality of software products or vendors. Instead of a small number of very large, vertically integrated vendors, we are seeing an explosion of smaller, more focused software services and vendors. The reasons for this evolution are simple: It takes less capital and other resources to create, integrate, accumulate and distribute useful software capabilities.