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SaaS Disruption 2.0: Established SaaS Vendors Challenged by Upstarts
Innovation waves are poised to disrupt first generation SaaS vendors, according to Techcrunch.
“We believe HR SaaS is one of the first clear cases of a third, newer path of broad SaaS innovation — next-generation SaaS (SaaS 2.0) disrupting established previous generations of SaaS (SaaS 1.0). HR 2.0’s success, playing out over the coming years, will be a catalyst for increasing entrepreneurial and VC attention into the platform potential of this third path. We will begin to see waves of future SaaS innovation focused on attacking established SaaS categories.”
SaaS software for Human Resources, HR is a likely first candidate to see disruption. Next World Capital expects that upstart options to existing HR SaaS will begin this year. HR SaaS is currently a $13 billion market. All the dominant first generation HR SaaS vendors have been acquired by big vendors. In 2012, Oracle bought Taleo, SAP acquired SuccessFactors, and IBM bought Kenexa. Techcrunch notes that in the current landscape there really are no large independent HR SaaS vendors still standing.
Large vendors are notorious for buying up smaller ones but not following through on investing in future growth and innovation. It is precisely because of that lack of nurturing that Techcrunch sees the HR SaaS market open to new disruption as newer more competitive and innovative smaller players enter the field.
After HR, which other categories will be ripe for SaaS 2.0 disruption?
