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SaaS: Profile of an On-Demand Buyer

By Dick Weisinger

What is the profile of a candidate buyer of services sold using the SaaS model?  A new report by market research company Celent discusses SaaS trends in the European insurance market.  A Tekrati article quotes Catherine Stagg-Macey, senior insurance analyst and author of the report, as saying that SaaS buyers typically view IT as a commodity item.  These customers see the ROI in using SaaS because it allows them to reduce costs and to also to reduce downtime. 

Celent sees a trend of early adoptors as small and medium size companies that are looking for competitive advantage.  Most large established insurance companies are more conservative and already have an IT infrastructure in place.  For those larger companies the benefits of SaaS are less compelling.  At least for now.  That type of thinking is expected to change in three to five years time.  The Celent report outlines growth trends in this market.

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