Gartner Research

Market Trends: Future Look at SaaS in the Application Markets

Published: 25 November 2015

ID: G00291913

Analyst(s): Nigel Montgomery , Yanna Dharmasthira , Joanne M. Correia , Chad Eschinger , Hai Swinehart , Robert Anderson , Tom Eid , Jim Hare , Chris Pang

Summary

SaaS shows no signs of decline, with even the poorest SaaS segment seeing a CAGR of 19.7% through 2019. However, subtle changes to demand patterns mean that SaaS vendors' product strategists need to change their go-to-market approaches or risk missing out on the burgeoning opportunity.

Table Of Contents

Introduction

Market Trend

  • Complexity Increases as SaaS Scales Into Large Enterprises
  • Market Structure Trend
    • SaaS Sales Will Almost Double by 2019
    • SaaS Leads Adoption of Public Cloud
    • SaaS Deployments Are Replacing Traditional Applications and Adding Net-New Applications
  • Buyers Trend
    • Buyers Expect SaaS to Solve Growing Total-Cost-of-Ownership Expense and Bring Faster ROI — Yet With Scale Comes Complexity
    • Security and Data Security Concerns Are Still Common
    • Business Units Own the Control of SaaS Applications
    • Cloud Adoption Across Vertical Industries Depends on the Environment in Which They Operate
  • SaaS Investments Continue to Increase Across All Regions
    • SaaS BI Starts With Data That Sits in the Cloud
    • CRM Across and Within Department Sales Critical to New Growth
    • ECM Suites Slowly but Steadily Adopt SaaS, While Enterprise File Synchronization and Sharing Provides New Cloud-Based Opportunities
    • HCM and Financial Management Systems Will Continue to Power the SaaS ERP Market
    • Office Suites Are Reaching the Cloud Office Tipping Point
    • PPM SaaS Alternatives Gain Favor in Difficult Times
    • Expectations for SaaS SCM Adoption Are High, but Current Adoption Remains Nascent
    • Web Conferencing and Collaboration/Social Software Suites Experience Continued Growth in SaaS Adoption

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 Contract Management
  • Enterprise Resource Planning
  • Office Suites
  • Project and Portfolio Management
  • Supply Chain Management
  • Teaming Platforms and Social Software Suites
  • Web Conferencing
  • Others

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