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(Market Trends: Software as a Service, Worldwide, 2009-2013” Gartner Research)
The rapid growth of the SaaS market is now forcing nearly every established independent software vendor (ISV) to develop their own SaaS options. However in doing so, ISV’s face a myriad of challenges and it’s worth understanding them further. Re-architecting existing applications to enable full leverage of the web, developing business models to take advantage of brand new lucrative global markets, understanding the confusing array of new software development tools, re-orienting software research not to mention the unthinkable task of re-structuring packaging and pricing models… Opportunities in the cloud are certainly here, but let’s get real – making the most of them won’t be easy.
IDC predicts that by the end of 2009, 76% of U.S. organizations will use at least one SaaS-delivered application for business use, which heralds a huge market shift towards SaaS delivered applications – should traditional on-premise software vendors be worried?
The traditional software vendor business have been focused on sealing long term licensees for specific software solutions, however regardless of industry sector they are beginning to recognise that times are changing. Traditional ISV’s have found themselves on the front line competing against custom built, on-demand, flexible and globally accessible software available at any internet touch point and in some cases, at less than half the cost to the end user. The SaaS revolution led by Cloud Computing capabilities is changing the way ISV’s do business and they need to react.
Further to predictions Gartner estimates the Software as a service market to have a compound annual growth rate of 22.1% through 2011 for the aggregate enterprise application software markets, which is more than double the growth rate for total enterprise software. Impressive stats, and a real indication that the SaaS market simply cannot be ignored.
The business changing revolution seems to have started with many traditional software vendors having lagged behind. This October 5 – 6 hundreds of them will descend on San Jose at the Cloud Futures Cloud Computing for Software Vendors Conference designed specifically to answer these very challenges. With Amazon Web Services, IBM, Enomaly, Blue Mountain Labs, Navatar Group, Enki.THINK Strategies and more confirmed this conference aims to cut right to the heart of the conundrum facing ISV’s right now – How to move traditional software into the cloud and take advantage of this booming market.
Information:
Ravi Virpal
Cloud Futures
{ravi@cloudfutures.com}
1 800 814 3459 ext 220
