Business & Technology Nexus

Dave Stephens on technology and business trends

SaaS Growth Projections

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I’ve offered only modest prior endorsements of SaaS. But the movement has undeniably continued to gain momentum. A recent Gartner publication offers some additional data on SaaS progress. It projects 21% SaaS growth in the enterprise software space – totaling $5.7B for 2007.

The report does go into some detail around where SaaS has achieved good market penetration and where it has opportunities. A great example of a SaaS success is web conferencing software – what company in their right mind would want to run their own. Yet there are lots of nooks and crannies in enterprise software – and so many have gone un-touched – either because of a perceived need to differentiate through customization or simply because of market forces.

How SAP, Oracle, and Microsoft respond to the movement is still TBD – SAP has been clearest in its intentions – and though many see its response as incomplete – the other two behemoths seem to be either very cagey or whistling past the graveyard.

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Written by Dave Stephens

08/13/07 7:19 AM at 7:19 am

Posted in Opinion

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