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Advisory Note: SaaS: An Idea Whose Time Has Come
Enterprise Management Associates, May 2007, Pages: 4
The Software as a Service (SaaS) model is the latest incarnation of a concept that has surfaced in multiple forms over the years. Marketed as Application Service Providers (ASPs), On-Demand Computing, and Utility Computing, the idea has always been compelling but until very recently there has been no rush to embrace it. However, the SaaS market is changing, as evidenced by the growing popularity of Salesforce.com and the advent of Workday. This market is one of growing vibrancy, and estimates are that SaaS will grab 25% of the enterprise software market within the next four years. This paper examines the reasons why SaaS will become an increasingly compelling option, especially to small and mid-sized businesses, and an increasing threat to enterprise software vendors.
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