The most popular and comprehensive Open Source ECM platform
Let us know more
SaaS: More Numbers Pointing Towards Growth
SaaS continues to grow rapidly. ACA Research’s recent study (sponsored by Salesforce.com) estimates that the SaaS market will double in 2007. Problems that could delay adoption cited in the survey include security, bandwidth, and loss of control of data. But many companies struggle with qualified staff shortages and with managing software on-site. The SaaS model can help these companies reduce the total cost of ownership.
Also of interest are new numbers from SaaS trail-blazer Salesforce.com. Salesforce.com reported results yesterday for the quarter ending January 31st. Sales of internet-based business software rose 58% and revenues were just short of half a billion dollars. On the negative side though, quarterly profits plummeted 91%. During the quarter, Salesforce added 90,000 new subscribers, bringing their total subscriber base to 646,000 from 2,700 customers.
Salesforce has more than 47 customers with more than 1000 subscribers each. Among these, Cisco has 25,000 subscribers, and Dell more than 15,000. CEO Marc Benioff’s plan is to invest in both R&D and sales to battle more traditional competition coming from Oracle and SAP. In the short term, profits have taken a hit, but longer term, Salesforce could extend its lead in becoming the dominant player in the on-demand world.
