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Advisory Note: SOA and SaaS: A Happy Marriage
Enterprise Management Associates, Nov 2007, Pages: 2
Software as a Service (SaaS) came into its own during 2007. Workday introduced its initial Enterprise Resource Planning (ERP) offerings and set expectations that it would be competitive with enterprise software vendors by mid-2008. Forbes magazine named Salesforce.com the third fastest-growing technology company, and Oracle, Microsoft, and Google all strengthened their footholds in the SaaS marketplace. In March, Cisco invested over $3 billion to acquire WebEx. Clearly, SaaS has moved beyond being a bet to becoming a certainty. The only questions that remain are when and how much. When will SaaS begin to be felt by enterprise software vendors and how much of the enterprise software market will it displace?
There are numerous reasons why SaaS has become a market force at this particular point in time, and earlier Research Notes have dealt with them in detail. Multi-tenancy, building applications using Open Source building blocks, and spreading the cost of expensive technology expertise are all reasons why SaaS provides a compelling solution, cost-wise. Another key success factor, however, is often overlooked, and this is the fact that the most successful SaaS applications are built over Service Oriented Architecture (SOA). Looking for an SOA success story? You don’t have to look far. Look at Concur, Salesforce, Workday, and RightNow.
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