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SaaS: Four Waves Under the Clouds
Saugatuck Research identifies four waves of SaaS in their 2008 report on the state of SaaS:
- Wave I — isolated single-point solutions
- Wave II — solutions that integrate with on-premise data and processes
- Wave III — inter- and intra-company collaboration and personalized workflows
- Wave IV — melding of IT and business together and to move beyond user and vendor experience
The waters appear to be a bit choppier than last year’s report — Saugatuck envisioned only three waves in their 2007 report (Three Waves of Change: SaaS Beyond the Tipping Point ).
Most companies using SaaS today are somewhere between Wave I and II today. Saugatuck sees more companies coming around to SaaS adoption. In their survey many companies expressed a desire to move to an on-demand model and when asked what company they envision as their future SaaS brand of choice, many (51 percent) saw most likely that their future vendor would be a pure-play SaaS vendor, not one of the brand-name traditional vendors of today.
The report also predicts that the growth of Platform as a Service (PaaS) will enable and significantly improve the enterprise-ready capabilities of most SaaS offerings.
Saugatuck also sees the transition of “Cloud Computing” into “Cloud Business”, a combination of the IT utility concept and business process outsourcing.
