ID Number: G00237640




Market Trends: SaaS's Varied Levels of Cannibalization to On-Premises Applications
29 October 2012
 
Chad Eschinger   Joanne M. Correia   Yanna Dharmasthira   Tom Eid   Chris Pang   Dan Sommer   Hai Hong Swinehart   Laurie F. Wurster  

Software as a service shows no signs of decline, with even the poorest SaaS segment seeing a compound annual growth rate of 11% through 2016. However, subtle changes to demand patterns mean that vendors need to change their go-to-market approaches or risk missing out on the burgeoning opportunity.







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Table of Contents

Contents
  • Introduction
  • Market Trend
    • Complexity Increases as SaaS Scales Into Large Enterprises
    • Market Structure Trend
      • SaaS Exhibits Varied Degrees of Adoption and Health
    • Buyers Trend
      • Buyers Expect SaaS to Solve Growing Total-Cost-of-Ownership Expense and Bring Faster ROI, but With Scale Comes Complexity
      • Data Security Concerns Hold Back SaaS in Business Intelligence
      • CRM Reaching 50% of Deployments as Growing Competition and Cannibalization of Installed Base Accelerate
      • Development of SaaS in DCC Software Market Depends on Internet Capacity
      • Enterprise Content Management Moves Slowly to SaaS as Current Use Cases Emphasize File Sharing and Storage
      • HCM Continues as Growth Driver for SaaS ERP
      • SaaS Offerings Complement and Coexist With Traditional Office Suites — Replacement Not an Option for Most Professional Users
      • Project and Portfolio Management SaaS Alternatives Gain Favor in Difficult Times
      • Lack of Functional Parity Limits SCM SaaS Adoption, but Growth Continues
      • Web Conferencing, Teaming Platform and Social Software Suite Usage Show a Preference for SaaS Deployments
  • Contrarian View
    • On-Premises Solutions Improve Their Implementation, Pricing and Upgrade Model to Make SaaS Less Attractive
  • Vendors to Watch
    • Business Intelligence
    • Customer Relationship Management
    • Digital Content Creation
    • Enterprise Content Management
    • Enterprise Resource Planning
    • Office Suites
    • Project and Portfolio Management
    • Supply Chain Management
    • Teaming Platforms and Social Software Suites
    • Web Conferencing
    • Others
  • Recommended Reading
Tables
Table 1.
SaaS Revenue Within Enterprise Software Sizing, 2011-2016 (Percent)
Figures
Figure 1.
Primary Reasons Driving SaaS Adoption, 2010-2012




This document is published in the following Dataquest Market Insights:
 
Software Applications Worldwide





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Resource Id: 2217217