Mar 14, 2007 by Matt Ammerman
Via Business Two Zero, here is a press release recently issued by Gartner titled Gartner Says Service Providers Must Prepare Now for the Software as a Service Wave. The release opens with numbers: The worldwide SaaS market reached $6.3 billion in 2006, with a forecast of growth to $19.3 billion by year-end 2011.
I want to focus on a portion of the release that stuck out most to me. As I spend my days working at a company that aims to be the driver for ISVs’ SaaS strategies, my mind is trained to pick up on the subtle urgency behind this statement:
“Although the SaaS market is still relatively small, service providers need to make important strategic decisions now.”
Ok, maybe it’s not so subtle. Either way, here’s Gartner’s preliminary list of things that SaaS vendors should do to stay ahead of the SaaS ‘wave’ (by the way, ‘wave’ is their wording. I don’t like labeling SaaS a ‘wave’ – it’s just too fundamental and far-reaching of a shift.) Nevertheless, from Gartner:
“Use solutions built on next-generation Web services, SOAs and highly automated server farms to produce multitenant, mass-customizable solutions that facilitate agility while sustaining uniqueness at a reduced cost”.
“Make strategic decisions around whether to offer SaaS as simply one element of a broader portfolio or to fully evolve toward a SaaS-based delivery model”.
“Act now because of the scale of change required to successfully exploit SaaS opportunities”.
“Conduct thorough due diligence to be well-placed to take advantage of opportunities and manage risk as the market evolves toward SaaS”.
Egads! Not that it’s a surprise around here, but this further illustrates that the shift from software vendor to service provider will require herculean efforts on the part of SaaS providers – startups and existing vendors alike. It will be very interesting to see how this all shakes out; and from our perspective at Apprenda, how SaaS platforms will be perceived and utilized to address these 4 vendor pain points and beyond. The gateway for SaaS platforms to enter the market is, of course, first through the perception that the notion of the platform does indeed satisfy, ease, or otherwise unburden as many of these hurdles and new responsibilities as possible.
Given that, if history is any indicator Gartner’s list of things that SaaS vendors should do to prepare for SaaS will evolve quickly into a veritable checklist of things that SaaS vendors will look to outsource to a SaaS platform.
Are you currently developing a SaaS app? Are you using enablement technologies (such as platforms or libraries)? What are the pain points that you think should be addressed and which ones where the ones you had the most trouble with? We would love to know your thoughts and experiences!
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