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SaaS 2.0: Software-as-a-Service as Next-Gen Business Platform
Saugatuck Technology, April 2006, Pages: 34
Software-as-a-service (SaaS) is undergoing a fundamental shift in how software is acquired, used and paid for. Emerging SaaS models and offerings are taking the SaaS concept far beyond first-generation application functionality and deployment, and into mission-critical business operations for large and small firms. And contrary to conventional wisdom, the smallest firms are the most likely to commit business-critical operations to SaaS-delivered applications.
We have defined this emerging, business-driven model of integrated software and services as 'SaaS 2.0,' and sees it as one of the most disruptive forces in IT and business management worldwide.
SaaS 2.0: Software-as-a-Service as Next-Gen Business Platform explains what is happening in SaaS, and how it affects both user and vendor firms. The report provides insights and analysis on the forces driving SaaS adoption, including the business motivators for user and vendor firms, and the expected business impact of SaaS adoption. The report also provides frameworks for optimizing next-generation SaaS provision and usage.
This research project is a continuation of our research begun over two years ago with our report “Pay-As-You-Go IT Services: Where’s the Business Value?” This latest effort included detailed telephone interviews with over 40 senior IT executives, a web-based survey of over 150 business and IT executives, and briefings from more than a dozen IT vendors and venture capitalists. The research was conducted between January 2006 and March 2006
Research Summary:
-Traditional business drivers such as efficiency and customer service are clearly leading SaaS customer adoption. SaaS adopters have been primarily seeking to reduce software costs and improve service levels for business applications. But adopters increasingly discover that SaaS offers flexibility, customization, and configurability for specific business or market conditions.
-Key market drivers will evolve from today’s cost-effective software management solutions (SaaS 1.0) to enabling companies to change how they do business (SaaS 2.0). The business drivers for SaaS 2.0 will be about helping users transform their business structures and processes. In this way, SaaS 2.0 has the potential to have much in common with Business Services Provisioning. -Sales channels (SIs, ISVs and VARs) will be critical to SaaS adoption growth, as users will still require application and data integration with their IT environments. Non-traditional channels (e.g., banks, telcos, web portals) will be key for many SaaS solutions. -SaaS Integration Platforms (SIPs) – solution hubs that provide application sharing, delivery, and management solutions – will become critical to broader SaaS adoption. Three to four dominant SIP Master Brands will emerge by 2010, and will manage more than 30 percent of core SaaS offerings to users. Monitoring and billing capabilities will enable increasingly attractive pricing.
Read This Report To Learn:
- How rapidly is SaaS growing, and what are the key business and technology factors driving (and inhibiting) adoption - across different customer segments?
- Which applications are leading customer adoption, and what are the reasons companies are looking to SaaS solutions in those categories?
- What are the key attributes that buyers are looking for in their SaaS providers, and the type of SaaS solution provider that buyers are most likely to deploy?
- How vendors will evolve to solve the key IT ecosystem needs for SaaS integration and SaaS distribution?
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