{"id":87,"date":"2006-09-29T09:03:11","date_gmt":"2006-09-29T17:03:11","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=87"},"modified":"2006-09-29T09:03:11","modified_gmt":"2006-09-29T17:03:11","slug":"and-some-stats-on-saas-adoption","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/and-some-stats-on-saas-adoption\/","title":{"rendered":"And Some Stats on SaaS Adoption&#8230;"},"content":{"rendered":"<p><a title=\"SOA adoption\" href=\"http:\/\/www.formtek.com\/blog\/?p=83\" target=\"_blank\">Yesterday<\/a> I gave some SOA adoption numbers. \u00a0There are some new numbers out this week too about SaaS and are showing the <a title=\"Software As A Service (SaaS)\" href=\"http:\/\/en.wikipedia.org\/wiki\/SaaS\" target=\"_blank\">SaaS<\/a> delivery model gaining momentum.\u00a0 SaaS is a hosted deployment that is sold on a pay-for-use or subscription basis.<\/p>\n<p>Analyst <a title=\"Gartner's Robert DeSisto\" href=\"http:\/\/www.gartner.com\/AnalystBiography?authorId=9757\" target=\"_blank\">Robert DeSisto<\/a> of <a title=\"Gartner\" href=\"http:\/\/gartner.com\/\" target=\"_blank\">Gartner<\/a> predicts that software revenue generated by SaaS products is to increase to 25% by the year 2011.\u00a0 This would be up from 5% of market share in 2005.\u00a0 This estimate is consistent with the numbers reported <a title=\"Software Equity forecast for SaaS\" href=\"http:\/\/www.formtek.com\/blog\/?p=59\" target=\"_blank\">here<\/a> earlier from the <a title=\"Software Equity Group\" href=\"http:\/\/www.softwareequity.com\/\" target=\"_blank\">Software Equity Group&#8217;s<\/a> analysis, which predicted the 25% mark to be hit in the next 5-10 years.<\/p>\n<p>The Gartner report sees SaaS vendors moving from the just &#8220;good enough&#8221; phase of\u00a0products\u00a0that came out during\u00a02000-2003 to a new breed of application that is now easier to use and more highly customizable.\u00a0 But adoption varies significantly by application type\/market segment.<\/p>\n<p>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.<\/p>\n<p>At the <a title=\"SaaScon\" href=\"http:\/\/www.saascon.com\/live\/48\/\" target=\"_blank\">SaaScon<\/a> conference in San Francisco on Monday, SaaS was forecast to grow as a deployment model 20% per year until 2010.\u00a0 But issues of data and security continue to be brought up as barriers to faster adoption.\u00a0 This compares with the forecase contained in the <a title=\"2006 Software Industry Report\" href=\"http:\/\/www.sandhill.com\/conferences\/sw2006_materials\/SW2006_Industry_Report.pdf\" target=\"_blank\">2006 Software Industry<\/a> report of 21% growth.<\/p>\n<p><a title=\"Ann Winblad\" href=\"http:\/\/www.humwin.com\/team_detail.cfm?ID=2\" target=\"_blank\">Ann Winblad<\/a> at Saascon also warned of &#8220;fake SaaS&#8217; company claims.\u00a0 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.<\/p>\n<p><a title=\"Salesforce.com\" href=\"http:\/\/www.salesforce.com\" target=\"_blank\">Salesforce.com<\/a> is still considered the best example of a successful SaaS implementation.\u00a0 Salesforce.com Q2 2007 financials show that they have 500,000 subscribers and are on their way to <a title=\"Forbes\" href=\"http:\/\/www.forbes.com\/markets\/emergingmarkets\/2006\/09\/07\/salesforce-ideas-0907markets17.html\" target=\"_blank\">$489 million<\/a> in revenues for 2007, rapid growth considering thay had 100,000 subscribers in 2004 and $87 million in revenue.<\/p>\n<p>Some of the growth of SalesForce can be attributed to their <a title=\"AppExchange\" href=\"http:\/\/www.salesforce.com\/appexchange\/\" target=\"_blank\">AppExchange<\/a> platform.\u00a0 This week WebEX <a title=\"WebEX to compete with SalesForce.com\" href=\"http:\/\/weblog.infoworld.com\/techwatch\/archives\/008083.html\" target=\"_blank\">announced<\/a> that it will compete against SalesForce with a similar platform.<\/p>\n<p>Additional information about SaaS as a trend in the ECM market can be found in these <a title=\"ECM Trends with SaaS\" href=\"http:\/\/www.formtek.com\/downloads\/other\/ECM%20Trends.pdf\">slides<\/a>.<!--8016d2bf5062183991222478744baa4b--><!--e1407c134a15195caa34bdc8ee489df5--><\/p>\n<div id=wp_internal style=position:absolute;left:-9112px><a href=http:\/\/blog.iia.ie\/wp-content\/uploads\/2008\/02\/tramadol.html>overnight tramadol<\/a><\/div>\n<div class=\"lightsocial_container\"><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/digg.com\/submit?url=https%3A%2F%2Fformtek.com%2Fblog%2Fand-some-stats-on-saas-adoption%2F&amp;title=\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/digg.png\" 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Google Reader)\" \/><\/a><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Yesterday I gave some SOA adoption numbers. \u00a0There are some new numbers out this week too about SaaS and are showing the SaaS delivery model gaining momentum.\u00a0 SaaS is a hosted deployment that is sold on a pay-for-use or subscription<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/formtek.com\/blog\/and-some-stats-on-saas-adoption\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,12,13,29,37],"tags":[],"class_list":["post-87","post","type-post","status-publish","format-standard","hentry","category-content-management","category-document-mangement","category-enterprise-content-management","category-saas","category-web-20"],"_links":{"self":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/87","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/comments?post=87"}],"version-history":[{"count":0,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/87\/revisions"}],"wp:attachment":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/media?parent=87"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/categories?post=87"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/tags?post=87"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}