Skip to main content

Top Reasons Why SaaS Gains Momentum

More current business management application deployments are run in-house on traditional, installed licenses, but with new implementations, software-as-a-service (SaaS) is gaining ground, according to the latest market study by In-Stat.

Over the next 12 months, of the number of U.S. firms initially implementing a business management application such as CRM (customer relationship management), ERP (enterprise resource planning), etc, the percentage implementing a SaaS solution will approach the percentage of firms deploying traditional licenses in that market.

Along with gauging demand for business management applications (CRM, ERP, etc) delivered as a service, In-Stat also looked at demand for productivity applications (like Microsoft Office) delivered as a service.

While generally targeting smaller offices with often basic computing needs, office productivity applications delivered as a service are also beginning to gain some traction in larger firms.

Roughly 15 percent of 100-plus employee firms who currently use traditional, installed office productivity applications indicated in an In-Stat survey that they plan to implement or try a hosted model in the next 12 months.

The research covers the U.S. business market for software as a service. It provides a forecast of SaaS revenue in the U.S. business market through 2012. It also contains analysis of a recent survey of U.S. businesses regarding SaaS. Discussion of market drivers and barriers is also provided.

In-Stat's market study found the following:

- Accessibility to applications by remote or mobile workers is an important benefit to current SaaS users as well as those who are interested in SaaS.

- The main inhibitors to SaaS adoption are security concerns for larger firms and a lack of perceived TCO benefits for smaller firms.

- Four out of five hosted productivity application users would recommend using them to colleagues and plan to use them as much or more in the future.

Popular posts from this blog

The Subscription Economy Churn Challenge

The subscription business model has been one of the big success stories of the Internet era. From Netflix to Microsoft 365, more and more companies are moving towards recurring revenue streams by having customers pay for access rather than product ownership. The subscription economy cuts across many industries -- such as streaming services, software, media, consumer products, and even transportation with the rise of mobility-as-a-service. A new market study by Juniper Research highlights the central challenge facing subscription businesses -- reducing customer churn to build a loyal subscriber installed base. Subscription Model Market Development The Juniper market study provides an in-depth analysis of the subscription business model market landscape and associated customer retention strategies. A key finding is that impending government regulations will make it easier for customers to cancel subscriptions, likely leading to increased voluntary churn rates. The study report cites the