Gartner Research

Market Trends: The Transformative Impact of SaaS on the Software Market

Published: 05 January 2018

ID: G00340495

Analyst(s): Laurie Wurster , Adam Woodyer , Robert Anderson


Mainstream adoption of SaaS is forcing traditional enterprise software providers to transform their business. Technology business unit leaders must adopt new indicators of success, unconventional business models and practices to ensure growth and profitability.

Table Of Contents


Market Trend

  • Traditional Providers Have Begun Challenging SaaS Pure Plays
    • Pure-Play Success May Depend on Perspective
  • Adopting New Indicators of Success
    • SG&A Expenses
    • Customer Acquisition Costs and Lifetime Value
    • Profitability and Cash Flow
  • Embracing New Opportunities From Increasing SaaS Adoption
    • SaaS Offerings Extend Reach Beyond IT
    • Persistence and Scale Translate Into Higher LTV

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