Comments on: Get Ready for SaaS, says Gartner http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/ Understanding the Software as a Service Revolution Sun, 14 Mar 2010 15:04:33 +0000 http://wordpress.org/?v=2.5 By: SaaS Blogs - » SaaS 101: The Benefits http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-94387 SaaS Blogs - » SaaS 101: The Benefits Fri, 17 Jul 2009 17:27:41 +0000 http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-94387 [...] will account for half of the application software spend by 2013, Gartner predicts that SaaS will triple in size by 2011 from 2006, Jeff Kaplan thinks SaaS adoption is underrated and the success of companies like [...] […] will account for half of the application software spend by 2013, Gartner predicts that SaaS will triple in size by 2011 from 2006, Jeff Kaplan thinks SaaS adoption is underrated and the success of companies like […]

]]> By: C R M I T - Solution On Demand http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-32942 C R M I T - Solution On Demand Mon, 04 Feb 2008 13:41:12 +0000 http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-32942 [...] Adoption of the model has been growing at well over 20% year over year, Nick Carr says (paraphrased) that SaaS adoption is set to explode and reports that McKinsey & Co. will release a survey showing that 61 percent of CIOs at North American companies with sales over $1 billion are already planning to adopt one or more SaaS application.  Additionally he says that Deutsche Bank projected that the SaaS market will account for half of the application software spend by 2013, Gartner predicts that SaaS will triple in size by 2011 from 2006, Jeff Kaplan thinks SaaS adoption is underrated and the success of companies like SalesForce.com should be enough to convince even the most skeptical, but if all of this is still not enough and you are having trouble convincing your customers, your boss or yourself into adopting SaaS, here is a list of benefits to consider. [...] […] Adoption of the model has been growing at well over 20% year over year, Nick Carr says (paraphrased) that SaaS adoption is set to explode and reports that McKinsey & Co. will release a survey showing that 61 percent of CIOs at North American companies with sales over $1 billion are already planning to adopt one or more SaaS application.  Additionally he says that Deutsche Bank projected that the SaaS market will account for half of the application software spend by 2013, Gartner predicts that SaaS will triple in size by 2011 from 2006, Jeff Kaplan thinks SaaS adoption is underrated and the success of companies like SalesForce.com should be enough to convince even the most skeptical, but if all of this is still not enough and you are having trouble convincing your customers, your boss or yourself into adopting SaaS, here is a list of benefits to consider. […]

]]> By: Sushant Madhab http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-2656 Sushant Madhab Mon, 09 Apr 2007 11:43:07 +0000 http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-2656 I liked the comments from Paul and Matt. Since, we have recently created/developed our own SaaS delivery platform for our innovative eFacility; what we know by now is that, technically there are a few challenges no doubt about it, BUT, it mainly lies in the vision, business & revenues, sales & marketing, pre-sales and after sales support. BUT, yes, with SaaS and Web2.0 together, "users" are in a much more comfort level than using traditional industrial software/traditional delivery systems. Because, no one likes months to six months of implementations any more. Rgds, Sushant Madhab www.workace.com I liked the comments from Paul and Matt. Since, we have recently created/developed our own SaaS delivery platform for our innovative eFacility; what we know by now is that, technically there are a few challenges no doubt about it, BUT, it mainly lies in the vision, business & revenues, sales & marketing, pre-sales and after sales support.
BUT, yes, with SaaS and Web2.0 together, “users” are in a much more comfort level than using traditional industrial software/traditional delivery systems.
Because, no one likes months to six months of implementations any more.

Rgds,
Sushant Madhab
http://www.workace.com

]]> By: Matt Ammerman http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-2206 Matt Ammerman Fri, 23 Mar 2007 02:03:25 +0000 http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-2206 @Paul - I agree with you wholeheartedly on this. The industry's giants are moving too slowly with SaaS adoption. But when you think about it, they HAVE to take it slow - it's quite important that their SaaS strategies are very close to 'right' from the get go, because of fundamental shifts like changes to sales channels (as Ultan highlights), and so on. As disruptive as business model and ancillary culture changes can be for them now, imagine the destructive power of getting it wrong - these companies don't just turn on a dime. It would seem that startups have the inherent agility to adjust with the unfolding demands of the SaaS model, giving them a strategic advantage that might just count for more than an established customer base. Thanks for the insight. Regards, Matt @Paul - I agree with you wholeheartedly on this. The industry’s giants are moving too slowly with SaaS adoption. But when you think about it, they HAVE to take it slow - it’s quite important that their SaaS strategies are very close to ‘right’ from the get go, because of fundamental shifts like changes to sales channels (as Ultan highlights), and so on. As disruptive as business model and ancillary culture changes can be for them now, imagine the destructive power of getting it wrong - these companies don’t just turn on a dime.

It would seem that startups have the inherent agility to adjust with the unfolding demands of the SaaS model, giving them a strategic advantage that might just count for more than an established customer base.

Thanks for the insight.

Regards,
Matt

]]> By: Abraham Sultan http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-2182 Abraham Sultan Wed, 21 Mar 2007 16:35:28 +0000 http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-2182 Ultan, You are very certain on what you are saying. That is why SaaS is considered such a disruptive concept. Not only will existing companies cannibalize their existing offerings by trying to move to SaaS but their entire sales, business model and company culture has to change. In the next few years we will see new companies enter the market and dominate an industry that has long been dominated by older players because the odds are that they won't be able to change in time. Ultan,

You are very certain on what you are saying. That is why SaaS is considered such a disruptive concept. Not only will existing companies cannibalize their existing offerings by trying to move to SaaS but their entire sales, business model and company culture has to change.

In the next few years we will see new companies enter the market and dominate an industry that has long been dominated by older players because the odds are that they won’t be able to change in time.

]]> By: Ultan O Brien http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-2181 Ultan O Brien Wed, 21 Mar 2007 12:58:24 +0000 http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-2181 I agree completely. The key drivers of this are 1) the Consumer web platforms like google, yahoo, itunes, ebay and amazon who have been delivering their "software as a service" for some time now, 2) The emerging SaaS orientated technologies such as Web 2.0, Blogs, Web Services API's, Mash-ups, Ajax, Folksonomy, and even Open source which ask the question - why can't business applications be as easy to use as Consumer Web apps and 3) the emergence of defining standards for applications within the Business Web - Where ISV's create once using SOA standards, run securely and scaleable, and integrate easily with other web services applications, and are delivery everywhere, so have a global appeal. We have created a suite of applications on www.panthius.com over the past 3 years and the key tenants that we started with or have developed over time were: Multi-tenancy Secure delivery High available network and hardware architecture Scaleable performance Scaleable functionality Web Services Integration Replicated development Environment and more recently we are focusing on application exchange. Our biggest commercial learning has been that SaaS delivered applications are not sold in the traditional manner, and that the sales organisation has to view the customer from a life-time rather than a transactional perpspective. Older dogs and their respective channel partners will (and are currently) struggle the most to learn these new tricks. I agree completely.
The key drivers of this are
1) the Consumer web platforms like google, yahoo, itunes, ebay and amazon who have been delivering their “software as a service” for some time now,
2) The emerging SaaS orientated technologies such as Web 2.0, Blogs, Web Services API’s, Mash-ups, Ajax, Folksonomy, and even Open source which ask the question - why can’t business applications be as easy to use as Consumer Web apps and
3) the emergence of defining standards for applications within the Business Web - Where ISV’s create once using SOA standards, run securely and scaleable, and integrate easily with other web services applications, and are delivery everywhere, so have a global appeal.

We have created a suite of applications on http://www.panthius.com over the past 3 years and the key tenants that we started with or have developed over time were:
Multi-tenancy
Secure delivery
High available network and hardware architecture
Scaleable performance
Scaleable functionality
Web Services Integration
Replicated development Environment
and more recently we are focusing on application exchange.

Our biggest commercial learning has been that SaaS delivered applications are not sold in the traditional manner, and that the sales organisation has to view the customer from a life-time rather than a transactional perpspective. Older dogs and their respective channel partners will (and are currently) struggle the most to learn these new tricks.

]]> By: Paul http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-2149 Paul Sun, 18 Mar 2007 21:03:07 +0000 http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-2149 Hi Matt, Is SaaS leveling the playing field? I think in some instances the new entrents have a significant advantage. They are nimble, they know what they are (by that i mean i currently work for a company with over 50 000 products, SF.com is a crm company... you get the idea). They also don't have the problems with existing billing and operations platforms. Service providers have to radically upskill their sales channels etc etc The ONLY benefit i can see that encumbents have is an existing customer base. If SaaS providers can make the cost of transition small, i think encumbents are in for a world of hurt. Encumbents are just moving too slowly IMHO. Paul Hi Matt,
Is SaaS leveling the playing field? I think in some instances the new entrents have a significant advantage. They are nimble, they know what they are (by that i mean i currently work for a company with over 50 000 products, SF.com is a crm company… you get the idea). They also don’t have the problems with existing billing and operations platforms.
Service providers have to radically upskill their sales channels etc etc
The ONLY benefit i can see that encumbents have is an existing customer base. If SaaS providers can make the cost of transition small, i think encumbents are in for a world of hurt.
Encumbents are just moving too slowly IMHO.

Paul

]]> By: Matt Ammerman http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-2046 Matt Ammerman Thu, 15 Mar 2007 09:44:57 +0000 http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-2046 Thanks for the comments. @Paul: Agreed. The requirements listed above are merely a sampling of the myriad technological, business & revenue, corporate culture, support, and sales impact that SaaS has on the way software business is conducted. Some argue that it's a good time to be a startup because the larger exising players (encumbents) are just going to have too difficult a time making the transition to SaaS. It just has too big of an effect across almost every aspect of the organization -technology being just a drop in the bucket. Is SaaS leveling the playing field - putting the spotlight on technogical differentiation vs. organization size and existing influence? What do you think? Thanks for the comments.

@Paul: Agreed. The requirements listed above are merely a sampling of the myriad technological, business & revenue, corporate culture, support, and sales impact that SaaS has on the way software business is conducted. Some argue that it’s a good time to be a startup because the larger exising players (encumbents) are just going to have too difficult a time making the transition to SaaS. It just has too big of an effect across almost every aspect of the organization -technology being just a drop in the bucket.

Is SaaS leveling the playing field - putting the spotlight on technogical differentiation vs. organization size and existing influence? What do you think?

]]> By: Paul http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-2027 Paul Wed, 14 Mar 2007 20:54:44 +0000 http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-2027 Comming at it from a slightly different point of view in that we are looking to build a delivery platform for SaaS. I think that SaaS is reaching an inflection point and will grow, market trust is still critical I think the major challenges aren't technical, i think (certainly for encumbents) one the major challenge is managing the sales channel, and being told to grow in a maner that won't too agressively canabalise existing revenues. The other is getting the support organisation away from customers and onto systems...sounds anethema but i know but its essential Comming at it from a slightly different point of view in that we are looking to build a delivery platform for SaaS.
I think that SaaS is reaching an inflection point and will grow, market trust is still critical
I think the major challenges aren’t technical, i think (certainly for encumbents) one the major challenge is managing the sales channel, and being told to grow in a maner that won’t too agressively canabalise existing revenues.
The other is getting the support organisation away from customers and onto systems…sounds anethema but i know but its essential

]]> By: Anshu Sharma http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-2024 Anshu Sharma Wed, 14 Mar 2007 19:24:03 +0000 http://www.saasblogs.com/2007/03/14/get-ready-for-saas-says-gartner/#comment-2024 I couldn't agree with you more that ISVs need start thinking about SaaS even if they are married to the on-premise model for now, or plan to offer SaaS many years from now. SaaS applications require a different architecture (e.g., more SOA), different business mindset, and operational skills that take a long time to acquire/build. I couldn’t agree with you more that ISVs need start thinking about SaaS even if they are married to the on-premise model for now, or plan to offer SaaS many years from now. SaaS applications require a different architecture (e.g., more SOA), different business mindset, and operational skills that take a long time to acquire/build.

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