A few SaaS facts

In my travels the past weeks, I spent about 36 hours in Las Vegas at the Gartner Integration Summit.  I sat through a great SaaS presentation by Gartner analyst Ben Pring and wanted to share a few of my notes:

  • SaaS-based
    revenue growth = 22.1% CAGR thru 2011
  • The first
    wave of SaaS adoption was end-users, not IT
  • Next wave
    will need an end-user AND IT message
  • The era of
    the ship it on a CD, load it on a server enterprise software is over
  • ~65% of
    Siebel licenses never in production before Oracle acquisition
  • ~55% of
    Peoplesoft/Vantive licenses never in production before Oracle acquisition
  • 18% average
    server utilization rate in the enterprise (Yikes!)
  • $1:$10
    software to services ratio was good for the supply side(vendors) but not the
    demand side (customers)
  • Large
    enterprise software companies (Oracle, SAP) high gross margins are under threat
    from upstart, pure plays (Salesforce.com)
  • Gartner believes SaaS is primarily a software
    delivery and management approach that exists in an established market, such as
    CRM or ERP

The last point is perhaps the most interesting when looking at software as a service in the enterprise.  Salesforce didn’t have better features than Siebel, the just made it easier for end-users to access and use it.

I also sat through a great presentation on enterprise mashups by Anthony Bradley.  Here’s some audio of his preso.

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