Research-based
Market Strategy Consulting

	Users want SaaS throughout the enterprise, whether their enterprises are ready for it or not; and
	SaaS is spreading throughout the enterprise, whether the vendors – or their offerings – are ready to support and deliver what users want, or not.

	SaaS adoption drivers, inhibitors, and strategies;
	SaaS’ evolution into core, critical business processes;
	The dramatic shift among providers toward integrative, platform-based services – including updates and refinements of Saugatuck’s visionary market adoption and evolution models; and
	User, ISV and provider issues, strategies and tactics for managing SaaS transitions.

Press Release / Media, BLOG and Podcast Coverage

	11-24-08 IBM Offers Cloud Computing Ratings (Red Herring)
	11-13-08 Saugatuck CEO McNee Leads ISV-to-SaaS Business Panel at SIIA OnDemand 2008 (Saugatuck Press Release)
	11-04-08 Saugatuck to Present Top Disruptive SaaS Changes, Guidance at IIR Event (Saugatuck Press Release)
	11-03-08 Gloomy Short Term Future for SaaS? (Iasta Blog)
	10-24-08 Is Integration Cloud Computing's Silver Lining? (Red Herring)
	10-08-08 Saugatuck CEO McNee to Speak on Cloud Computing and SaaS Futures (Saugatuck Press Release)
	10-07-08 Not a Small Market: Saugatuck Technology Announces SMB-Focused SaaS Study (Saugatuck Press Release)
	10-06-08 Software as a Service (SaaS): Cloudy in SMBs (MC Press)
	09-29-08 Running Your Business In the Cloud (B-Mighty/InfoWeek)
	09-09-08 On-Demand vs. On-Premise: You pay your money, you make your choice (mycustomer.com)
	08-22-08 'Cloud Computing' is Ready for Enterprise Prime Time, But… (Informatica Blog)
	08-20-08 SaaS: The (data center) Killer App (SearchCIO)
	08-19-08 IT careers in the 'cloud' (Reid Blog)
	08-18-08 SaaS: Four Waves Under the Clouds (Fromtek)
	08-04-08 SaaS for Core Financials, Anyone? (BusinessFinance)
	08-04-08 Ready Or Not, Here Comes SaaS (Intelligent Enterprise)
	08-04-08 SaaS erreicht Europa (Computerwoche)
	07-28-2008 SaaS: A Blue-Chip Enterprise Solution? (Sandhill)
	06-27-08 SaaS Sets the Stage for 'Cloud Computing' (StickyMinds – of FEI article authored by B. McNee, B. Guptill)
	06-17-08 Many Degrees of Multi-Tenancy (ZDNet)
	06-09-2008 Won’t Try SaaS? Let Us Count the Reasons (IT Business Edge)
	05-16-08 Platform-as-a-Service Gives SaaS a New Push (IT Business Edge)
	05-02-08 Trend Could Radically Alter Software Biz (Investor’s Business Daily)
	05-02-08 SaaS adoption for Business Intelligence (MyDials Blog)
	04-29-08 Saugatuck CEO McNee to Lead SaaS Management Panel at FEI Summit (Saugatuck Press Release)
	04-25-08 LongJump Partners with Jamcracker to Deliver On-Demand ... (PR Web)
	04-09-08 Saugatuck Managing Director Chairs Open Source + SaaS Panel at MySQL Event (Saugatuck Press Release)
	04-03-08 Virtualize Me! (Forbes)
	03-12-08 Saugatuck to Showcase SaaS Satisfaction Data at SaaScon 2008 (Saugatuck Press Release)
	02-29-2008 OpSource Sees SaaS Reigning In the Cloud (Destination CRM)
	02-18-2008 SaaS-based ERP: Payback on the horizon (Search-CIO)
	01-28-08 Saugatuck Teams with IBM for Worldwide “Fast Track to SaaS” Briefing Series (Saugatuck Press Release)
	01-24-08 Saugatuck Founder McNee to Present at SaaScon 2008 (Saugatuck Press Release)
	01-24-08 Virtualization Report: Just Three Main Vendors Will Dominate Till 2010 (Web 2.0 Journal)
	01-23-08 SaaS Predictions for 2008 and Beyond (Krish)
	01-22-08 On Demand Economics (Information-Age)
	01-14-08 Is 2008 The Year of Virtualization? (CMSWire)
	01-11-08 The “V” Word (Sandhill.com)
	01-08-08 Virtualization to eat into IT Budgets (Techworld)
	01-08-08 IT Managers Stymied by Limits of X86 Virtualization (NetworkWorld)
	01-03-08 The New State of SaaS – Integration Platforms (Scribe)
	12-27-07 SaaS predictions for 2008 and beyond (SaaStream)

Executive Summary:

Enterprise Ready, or Not - SaaS Enters the Mainstream (Freely available. Registration Required)

Read this report to learn:

	SaaS use is expanding dramatically while becoming more complex. What is SaaS really being used for by firms worldwide, and where will it be used in the next 12 to 36 months?
	The move from SaaS to “cloud computing” is a key shift for user and vendor business. How much of a role will SaaS – including on-demand infrastructure services – play in core enterprise IT infrastructure and systems?
	SaaS is a business-driven decision. What are the business challenges, factors and decisions driving – or inhibiting - SaaS adoption by user firms?
	The growth of SaaS remains unchecked, and unmanaged, by a surprising number of user firms. What are user executives’ strategies and tactics for acquiring, deploying, and managing SaaS as part of business and as part of IT?
	SaaS changes the nature of software markets and competition. Where, how, and why will ISVs stumble as they move to compete with SaaS, or as they work to become SaaS providers themselves?
	As we move toward an on-demand world linked to on-premise IT and operations, what are and will be the most effective business models and strategies for ISVs and SaaS providers in the coming months and years?

Research Highlights:

	SaaS not only continues to grow in successive waves of evolution and adoption, but its complexity and capabilities are accelerating. A confluence of business and technology tides has combined to raise a fourth SaaS wave – a wave that threatens to sweep IT and business up, together, and forward in ways not previously experienced by users and vendors.
	Continuous growth and innovation are core competitive requirements in most SaaS markets – especially the ability to develop and deliver updates and new releases on a quarterly (or more frequent) basis, while addressing an ever-expanding array of customer and partner desires and requirements for interfaces and function.
	Users are accepting and implementing SaaS as part of mainstream IT, particularly in North America and Europe , where experience and satisfaction with SaaS provider integration and customization capabilities are significantly higher than in Asia-Pacific. This increasing, and more mainstream, user acceptance is expected to move rapidly to widespread user expectation of ever-increasing SaaS capabilities and functionality directed at linking and interoperating with on-premise systems. And as SaaS becomes more integral to user business, user needs and demands for customization and more unified and integrative platforms increase.
	As the use (and value) of SaaS grows within user enterprises, so does the need for management. Hence, SaaS providers are driven to develop and deliver ever-more-sophisticated platform, integration and management offerings. Providers are therefore expanding and improving SaaS offerings to meet and exceed user desire and demand, as well as to establish and extend their competitive advantages.
	SaaS enables change, and especially efficiency improvements in how businesses operate as they increasingly model and manage business processes that span on-premise and cloud-based platforms. The use of third-wave SaaS thus enables, and in turn requires, transformation of the business itself.
	“Cloud Computing” actually becomes – in a very short time – “Cloud Business.” It is the natural progression of SaaS, the IT utility concept, and business process outsourcing and transformation. It enables the delivery (and refinement) of optimized IT and business simultaneously, in real-time and on-demand, or more likely, as parts of selective outsourcing strategies in a hybrid IT and business environment.
	Cloud Computing will evolve to into a series of converged platforms for the delivery of on-demand infrastructure services, SaaS enablement and cloud-based development. This vastly increases the range of opportunities for SaaS providers as well as software developers, code firms, and IT services providers.

Table Of Contents: 

	Introduction: SaaS and the Enterprise
	Research Highlights SaaS Growth and Change from 2003 to 2016 What the Data Shows: A Snapshot of User SaaS Realities The Next Wave: Platform-as-a-Service Enable Enterprise-Ready SaaS The Changing Competitive Landscape Strategic Planning Positions (SPPs)
	SaaS Growth and Change from 2003 - 2016 Wave I: Cost-effective Software Delivery Wave II: Integrated Business Solutions Wave III: Workflow-enabled Business Transformation Strategic Planning Positions (SPPs) Next Wave: Cloud Computing Strategic Planning Positions (SPPs)
	What the Data Shows: A Snapshot of User SaaS Realities SaaS Presence Right Now - Holding Steady? SaaS Today - Top Ten Enterprise Uses Business Expectations of SaaS The Shift to Core Systems of Record Strategic Planning Positions (SPPs) SaaS Satisfaction - and Enterprise Readiness
	The Next Wave: Platforms-as-a-Services Enable Enterprise-Ready SaaS SaaS and On-Demand Infrastructure Platforms: A Taxonomy Strategic Planning Positions (SPPs)
	The Changing Competitive Landscape The SaaS Transition: Business Challenges for ISVs Strategic Planning Positions (SPPs)
	Conclusion: What to Do About SaaS User Guidance Vendor Guidance
	Appendix A: User Research Survey Demographics
	Appendix B: Vendor Research Survey Demographics

List of Figures and Sidebars:                                                              

	Figure 1: From Waves to the Cloud: Four Stages of SaaS Evolution
	Figure 2: Cloud Computing and Platform-as-a-Service
	Figure 3: Six Categories of Cloud Computing
	Figure 4: Top Ten SaaS Users
	Figure 5: Top Five Business Benefits Expected from SaaS
	Figure 6: SaaS Application Adoption (Worldwide) 2008 - 2010
	Figure 7: Marketplace - SaaS and Core Mission-Critical Business Processes
	Figure 8: Top Areas of SaaS Satisfaction, 2008
	Figure 9: Percentage of SaaS Users Satisfied or Highly Satisfied
	Figure 10: Layers of SaaS Value
	Sidebar: User Snapshots - SaaS Deployment Insights and Rationale
	Figure 11: A Taxonomy of Services Delivered by SaaS Platforms
	Figure 12: Best-Positioned SaaS Master Brands
	Figure 13: SaaS Master Brands - First Mention
	Sidebar: Managed Services and SaaS

 

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