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SaaS To Dominate Business Software Delivery: Gartner
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The analyst firm says 25 per cent of new business software will be delivered as SaaS by 2011.
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Saturday, September 30, 2006:
Going by a report from Gartner, by 2011, 25 per cent of new business software will be delivered as software as a service (SaaS). In 2005, SaaS represented approximately 5 per cent of business software revenue, according to the analyst firm.
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"As SaaS became a viable delivery model from 2000 to 2003, most providers supplied ‘good enough’ functionality with core configuration capabilities. SaaS and solving business complexity were two phrases not associated with each other," Robert DeSisto, research vice president for Gartner.
According to Gartner, the adoption of the SaaS software delivery model has varied significantly by market segment. SaaS accounted for approximately 8 per cent of CRM total software revenue in 2005, and the 2006 SaaS revenue is expected to reach 12 per cent of total CRM software revenue. Besides, integration as a service had 10 per cent adoption in its market. But, other markets, such as the ERP and supply chain management segments, had less than 4 per cent adoption.
DeSisto added that the majority of SaaS deployments continued to be focused in individual departmental initiatives, such as sales force automation, except in SMBs. In SMBs, vendors provide capabilities to support more end-to-end processes, such as opportunity to order and in integration as a service where companies are already using SaaS for large projects.
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