September 1, 2009 – Software as a service is changing business fundamentals, according to Saugatuck’s fourth annual SaaS research program, which was comprised of a Web survey, interviews and briefings with qualified user enterprise executives and SaaS vendors/providers.

Saugatuck’s research indicates a series of planning positions to take into account through 2014. These include the following:

  • Though SaaS (and cloud computing) will not become the primary IT standard and practice by year end 2012, it will be an important agent of change through this time period.
  • By year end 2014, however, SaaS (and cloud computing) will become integral to infrastructure within all aspects of user firms, with variations based on region and business culture.
  • Through 2012, the most substantial impact of SaaS adoption on user IT management will be the ability to improve user support.
  • Through 2012, the second-most substantial impact of SaaS adoption on user IT management will be an improved ability to yield substantial cost reductions.
  • Through 2012, more than 40 percent of traditional vendors will be paralyzed by strategic uncertainty regarding SaaS and other software business models.
  • By year end 2012, nearly 70 percent of SMBs and 60 percent of large enterprises will have adopted at least one SaaS application worldwide.
  • Through 2012, new SaaS-based provisioning and usage will be led by non-U.S. markets, although the U.S. will remain the market with the highest overall rate of SaaS adoption worldwide.
  • Through 2012, collaboration will remain the leading SaaS solution category that is adopted, across all customer segments – with sales and customer relationship management, e-commerce and human resources following close behind.
  • SMBs are much more eager to embrace core systems of record (including financial solutions) than large enterprises throughout the planning horizon.
  • Through 2014, U.S.-headquartered SaaS providers will continue to dominate SaaS markets worldwide.

“How users do business with SaaS is changing how providers develop and deliver SaaS, and is changing how ISVs [independent software vendors] and other players will need to compete over the next several years,” said Saugatuck founder and CEO Bill McNee in the announcement.
For more information on the study, visit Saugatech’s Web site.

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