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An Endless Cycle of Innovation: Saugatuck
SaaS Scenarios Through 2014
Document: SSR-634
Date of
Publication:
August
27, 2009
Number of Pages:
28
Lead Author(s):
B. Guptill, B. McNee
Contributing Author(s): C. Burns,
M. Koenig and M. West
Price: $1,295.00 USD
(Single User License)
Software-as-a-service
(SaaS) is changing the fundamentals of business for user companies
and for SaaS providers themselves. These changes are part of a
multi-year “loop” cycle that reciprocates between users and
providers, with each side influencing the other in unforeseen ways.
Mismanaging
this “endless loop of innovation” will prevent user firms from
being able to derive real competitive advantage from SaaS, prevent
SaaS providers from competing on an increasingly global stage, and
trap ISVs from growing along with the global user IT market.
Understanding
how each side influences the others, and how to manage it
effectively through changing market scenarios, is the key theme of
“An Endless Cycle of
Innovation: Saugatuck SaaS Scenarios Through 2014,” the latest
and most ambitious global research report developed by Saugatuck
Technology Inc.
This
report includes analysis, insights and guidance developed from
Saugatuck’s fourth annual SaaS research program, which was
comprised of a web survey including 1,788 qualified user enterprise
executives; interviews with 30 user enterprise executives with SaaS
experience; and briefings with 25 SaaS vendors/providers.
“The
research shows us a combination of changing SaaS acquisition and
adoption, both as a result of the global recession, and as a result
of the changing nature of SaaS itself. How users do business with
SaaS is changing how providers develop and deliver SaaS, and is
changing how ISVs and other players will need to compete over the
next several years,” according to Saugatuck founder and CEO Bill
McNee, one of the study’s lead authors. “Failure to recognize
and adapt to these changes will make it extremely difficult, and
much more costly than it should be, for anyone to benefit from
SaaS.”
Research Summary:
Saugatuck’s
research indicates a series of planning positions for users, SaaS
providers and ISVs to take into account through 2014. These include
the following:
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Despite impressive investments in SaaS development and adoption in different parts of the world, SaaS (and Cloud Computing) will not become the primary IT standard and practice by YE 2012. SaaS will instead be primarily an important
“agent of change” through this time period. |
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By YE 2014, however, SaaS (and Cloud Computing) will become
integral to infrastructure, business systems, operations and development within all aspects of user firms, with variations in status and roles based on region and business culture. |
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While SaaS has favored both startups and established firms with a variety of management styles and pocketbooks, the current economic challenges will weed out all but the better-funded and better-managed SaaS providers by YE 2012 (especially those that are not cash-flow positive). |
Press Release / Media, BLOG and Podcast Coverage:
Executive Summary:
An Endless Cycle of
Innovation: Saugatuck SaaS Scenarios Through 2014
(Freely available. Registration Required)
Read this report to learn:
 |
Which
of five scenario
outcomes are the most likely for SaaS users, providers,
partners, channels and markets overall? How will these differ
from today’s reality, and what should be done today to
optimize the ability to succeed in each scenario? |
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How
is SaaS transforming user business capabilities and operations,
expanding the ability of IT to innovate throughout the
enterprise, and in turn transforming SaaS offerings and
providers?
|
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When
will SaaS truly begin to form core IT for a majority of user
firms, becoming the de facto, “go to” model for user
enterprise IT?
|
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What
will happen to traditional ISVs, especially as they struggle
with limited capital and increased competition from SaaS
simultaneously? |
Six Years of Saugatuck SaaS Research:
Saugatuck
began surveying and analyzing on-demand IT in 2003, publishing our
first report on the subject, “Pay-As-You-Go
(PAYG) IT: Where's the Business Value?” in April 2004. Our
first global, SaaS-specific user executive survey and vendor
interview/briefing program was executed in early 2006, with our
analysis published in the April 2006 ground-breaking report, “SaaS
2.0: Software-as-a-Service As Next-Gen Business Platform.”
This
report represents key analysis and insights developed from our
fourth such research program, which was comprised of a web survey
including 1,788 qualified user enterprise executives in 23
countries; interviews with 30 user enterprise executives with SaaS
experience; and briefings with 25 SaaS vendors/providers.
Table Of Contents:
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Summary and Research Findings |
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So What? |
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Strategic Planning Positions
(SPPs) |
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Introduction |
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SaaS and Business Transformation |
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SaaS and IT Transformation |
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Reciprocal Transformation |
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SaaS Industry Scenarios |
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User Impact |
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Vendor Impact |
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Appendix A: Recent Saugatuck SaaS Research |
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Appendix B: Research Methodology and Demographics |
List of Figures and Sidebars:
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Figure 1: Four Waves of SaaS and Cloud |
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Figure 2: The SaaS Innovation / Transformation Cycle |
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Figure 3: Business Benefits Expected from SaaS |
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Figure 4: Business Capabilities Considered in Selection Process |
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Sidebar: Saugatuck’s Fourth Annual SaaS Survey |
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Figure 5: The SaaS Innovation Transformation Cycle |
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Figure 6: SaaS Innovation and Critically vs. Satisfaction |
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Sidebar: A SaaS Swap-out Trend? |
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Figure 7: Saugatuck SaaS Scenario through 2012 and 2014 |
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Sidebar: SMBs and Large Enterprise Trends |
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Figure 8: SME vs. LE SaaS Business App Deployment and Plans through 2011 |
Related Research:
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08-21-09
A Slice of SaaS Data: Business Capabilities in SaaS Solution
Selection (R.
Exler, B. Guptill, 4 pages, MKT-631, $$$)
|
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08-19-09
Data Breaches Belie Security Concerns Regarding On-Premise vs.
SaaS and Cloud (B.
Guptill, 2 pages, RA-630)
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08-07-09
Investigating Key Beliefs Behind “SaaS Inertia” Among Legacy
ISVs (R. McNeill,
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07-30-09
Collaborative SaaS Insights: Tiers of Deployment Over Time (B.
Guptill, 6 pages, MKT-623, $$$)
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07-01-09
User Cloud Infrastructure Expectations: Mainstream IT by 2011?
(M. West, C. Burns, B.
Guptill, 2 pages, RA-610)
|
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06-29-09
SaaS Vendor Partnering: Navigating the Channel (C.
Burns, 5 pages, MKT-612, $$$)
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06-25-09
Billing Solutions for the Cloud: Monetization or Muddling
Through? (M. West, 5
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|
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06-11-09
SAP Expands Upon its On Demand Strategy (B.
McNee, 4 pages, RA-607)
|
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05-29-09
A Slice of SaaS Data: SMB Adoption Plans Grow in AsiaPac &
Euro Regions (B. Guptill,
6 pages, MKT-603, $$$)
|
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05-28-09
SaaS Vendors Starting to Feel the Effects of Tough Economy
(B. McNee, 5 pages, RA-602)
|
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05-06-09
Saugatuck Readers Survey: SaaS and Cloud Reign Supreme (B.
McNee, 3 pages, RA-596)
|
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04-30-09
SaaS Channel Research, Part 2: How Can ISV Channel Partners
Differentiate in the Brave New SaaS/Cloud World? (M.
Koenig, M. West, 5 pages, MKT-593, $$$)
|
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04-30-09
Safety First: SaaS Survey Shows Data Concerns Rule (C.
Burns, 5 pages, MKT-592, $$$)
|
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04-29-09
HP’s EDS and Microsoft Collaborate to Sell Online
Collaboration Suite (B.
Guptill, M. West, C. Burns, 3 pages, RA-590)
|
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04-17-09
SaaS Channel Research, Part 1: Subtle, Deadly Change for ISV
Channel Partners? (M.
Koenig, M. West, 5 pages, MKT-588, $$$)
|
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04-15-09
Saugatuck at Cloud Slam ‘09: Boundary-Free Enterprises and
Changing Business (M.
West, 2 pages, RA-587)
|
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03-24-09
SaaS in the Post-Crash Era: Industry Data Indicate IT Issues Top
of Mind (M. West, 5
pages, MKT-576, $$$)
|
 |
03-04-09
A Slice of SaaS: Worldwide Channel Preferences Show Mainstream
Trends (B. Guptill, 3
pages, RA-570)
|
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02-27-09
Hosted Solutions versus Cloud: A Model Approach (C.
Burns, 5 pages, STR-569, $$$)
|
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02-17-09
SaaS: The Second S is for Service – Part 2 (R.
McNeill, C. Burns, B. McNee, 6 pages, MKT-564, $$$)
|
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02-12-09
SaaS: The Second S is for Service – Part 1 (R.
McNeill, C. Burns, 5 pages, MKT-563, $$$)
|
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02-12-09
SaaS in Finance: Mainstream, Growing, and Poised for Growth (B.
Guptill, B. McNee, M. West, 3 pages, RA-562)
|
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02-11-09
Great Expectations: SaaS in the Finance Organization (B.
McNee, M. West, B. Guptill, M. Koenig, C. Burns, 32 pages,
SSR-561, $$$)
|
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01-30-09
CIOs Need Skills to Leverage Disruptive Technologies for Company
Gain (B. McNee,
S. Medina
, B. Guptill, 5 pages, CIO-557, $$$)
|
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01-28-09
India Inc., SaaS and the Cloud: Rethinking Future Market
Opportunities (B. McNee,
R. McNeill, 3 pages, RA-556)
|
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