The most popular and comprehensive Open Source ECM platform
Let us know more
And Some Stats on SaaS Adoption…
Yesterday I gave some SOA adoption numbers. There are some new numbers out this week too about SaaS and are showing the SaaS delivery model gaining momentum. SaaS is a hosted deployment that is sold on a pay-for-use or subscription basis.
Analyst Robert DeSisto of Gartner predicts that software revenue generated by SaaS products is to increase to 25% by the year 2011. This would be up from 5% of market share in 2005. This estimate is consistent with the numbers reported here earlier from the Software Equity Group’s analysis, which predicted the 25% mark to be hit in the next 5-10 years.
The Gartner report sees SaaS vendors moving from the just “good enough” phase of products that came out during 2000-2003 to a new breed of application that is now easier to use and more highly customizable. But adoption varies significantly by application type/market segment.
Gartner calculates 8% of the CRM market in 2005 as being deployed as SaaS, but less than 4% of ERP and Supply Change Management apps are SaaS.
At the SaaScon conference in San Francisco on Monday, SaaS was forecast to grow as a deployment model 20% per year until 2010. But issues of data and security continue to be brought up as barriers to faster adoption. This compares with the forecase contained in the 2006 Software Industry report of 21% growth.
Ann Winblad at Saascon also warned of “fake SaaS’ company claims. She sees the test of a true SaaS deployment as being fully multi-tenant, being built on Web Services, and based on configurable user privileges and administration.
Salesforce.com is still considered the best example of a successful SaaS implementation. Salesforce.com Q2 2007 financials show that they have 500,000 subscribers and are on their way to $489 million in revenues for 2007, rapid growth considering thay had 100,000 subscribers in 2004 and $87 million in revenue.
Some of the growth of SalesForce can be attributed to their AppExchange platform. This week WebEX announced that it will compete against SalesForce with a similar platform.
Additional information about SaaS as a trend in the ECM market can be found in these slides.
