Posts Tagged ‘saas’

Some software markets will be disrupted by SaaS. But which ones?

Software-as-a-service (SaaS) is an important new set of capabilities and engagement models in the IT industry, particularly in the emerging world of cloud computing.

Forrester Research projects that SaaS offerings will grow from 7% of total software revenues in 2010 to 17% in 2013. But is SaaS a truly disruptive technology, i.e., one that allows new market entrants to overtake existing vendors?

Many SaaS vendors say yes. But Forrester’s analysis of 123 software market segments shows that SaaS will have little or no effect on many of them. Moreover, some new and emerging software products like blog and wiki platforms began as SaaS products with no disruption of existing vendors.

Ahead of the storm

Cloud computing

by David Baum

For many businesses, the concept of cloud computing means renting hardware, software, or applications from a public cloud service provider. Gone are the hassles of managing your information systems, the advocates say. You simply pay a monthly fee and let the service provider take care of your IT needs.

Based on the enthusiastic coverage in leading business and technology journals, you would think that cloud computing is already revolutionizing the entire technology industry. If enterprises don’t move fast, they will miss a stratospheric opportunity.

In the cloud

Cloud computing – which includes Software as a Service (SaaS) – means that your programs and data are held on servers which are owned and managed by a third party. You then connect to them over the Internet.

There are many good business reasons for using cloud computing. You do not have the capital outlay for the server hardware, software licences and data centres. You can pay by subscription, or even on a “pay as you go” basis. Also, the servers are located in secure data centres and managed to a higher level than is normally possible or economic for most businesses.