Abstract
SaaS (Software as a Service) is creating a lot of hype in the market place as an alternative to traditional, installed licenses for business management applications. In its March 2008 SaaS survey, In-Stat asked US-based survey respondents about their usage of six specific business function-related applications delivered in the SaaS model such as CRM, ERP, and Web collaboration applications.
In-Stat also questioned respondents about their use of Microsoft Office-esque productivity applications delivered as a service specifically to gauge the impact that SaaS productivity applications might have on Microsoft' s dominant position in this space.
This report covers current adoption of, and demand for, these SaaS business applications over the next year. Also covered are the crucial reasons why businesses are or are not interested in these applications, as well as who they turn to as providers.
Findings are broken out into two separate sections. The first is focused on demand for business management applications delivered as a service such as CRM, ERP, etc. The second section focuses on demand for office productivity applications delivered as a service such as word processing, spreadsheet, and presentation applications. In both sections, differences between size of business are also pointed out when interesting and applicable.
A forecast of total US business application hosting revenues through 2012 is also included.
Table of Contents
- Executive Summary
- If SaaS is So Great, What is Preventing Mass Adoption?
- Hosted Applications: They Don' t Make ' Em Like They Used To
- Definition of Applications in Survey:
- Business Management Application Usage
- Survey Guidance Given to Respondents
- Take Rates for SaaS Applications Vary by Function
- SaaS Deployments Lag In-House Deployments
- Current Hosted Application Users Satisfied With Services
- Multiple Factors Seen as Important Benefits of SaaS Business Applications
- Hosted Business Applications Offer Savings of 34% Compared to Installed Applications
- What Leads to Hosted Business Ap Users' Dissatisfaction?
- Who Do Users of Hosted Applications Turn To?
- Why Are Businesses Not Using SaaS?
- Why the Lack of Interest in Hosted Business Management Applications?
- Office Productivity Applications
- Current Office Productivity Applications Usage
- Current Hosted Office Productivity Applications Users
- What Are the Adoption Drivers for Current Hosted Application Users?
- Satisfaction With Hosted Office Productivity Applications Good, But Not Great
- What Would Current Users Be Willing to Pay For?
- Who Do Current Users Turn to as Providers of Hosted Applications?
- Current Installed Users Who are Going to Switch to or Try Hosted
Applications
- Why Try Hosted Applications?
- Who Will They Turn to as Providers of Hosted Applications?
- Current Installed Users With an Interest in Hosted Applications
- Can Anything Stoke the Interest of Installed-License Users in Hosted Applications?
- What Drives Interest in Hosted Office Productivity Applications Among Curious Office Users
- Steadfast Installed Users
- Why the Lack of Interest in Hosted Productivity Applications?
- Summary
- Methodology
- Size of Business Segmentation
- Glossary
- Related In-Stat Reports
- Appendix
List of Tables
- Table 1. US Business Application Hosting Revenues, 2007 - 2012 (US$ Millions)
- Table 2. Business Management Application Implementation Status
- Table 3. Non-SaaS User Interest in Trying Hosted Applications in Next 12 Months
List of Figures
- Figure 1. Business Management Application Implementation Statu
- Figure 2. Over 80% of Current Hosted Ap Users Will Use Same Amount or More Hosted Applications
- Figure 3. TCO not the only Benefit to Current or Future SaaS Users
- Figure 4. Only 4% Say There is no TCO Benefit to Hosted Business Applications
- Figure 5. Security and Poor Support Leading to Churn
- Figure 6. Software Companies Turned to Most Often as Hosted Applications Providers
- Figure 7. Little Interest in Hosted Applications among Current Non-Hosted Applications Users
- Figure 8. Reasons for Disinterest in Hosted Applications Vary by Size of Business
- Figure 9. Installed Licenses Exclusively Used by Three-Quarters of US Market
- Figure 10. Multiple Benefits Resonate With Current Hosted Productivity Applications Users
- Figure 11. Majority of Current Hosted Applications Users Only Moderately Satisfied
- Figure 12. Four Out Of Five Users Would Recommend Using Hosted Productivity Applications
- Figure 13. Four Out of Five Users Plan to Use as Much or More in Next Year
- Figure 14. Providers Could Potentially Charge for Extra Features
- Figure 15. Preferred Providers of Hosted Productivity Applications Vary
- Figure 16. Not Much Demand for Hosted Applications Expected Among Current Installed License Users
- Figure 17. TCO and Accessibility are Key Benefits to the Hosted-Experimenting
- Figure 18. Pure-Play Providers Will See Market Share Gains in Next Year
- Figure 19. Not Much Interest in Using or Trying Hosted Applications among Current Installed Users
- Figure 20. Same Benefits Resonate with Hosted-Curious Installed Productivity Users
- Figure 21. Lack of TCO Benefit the Main Reason for Disinterest Among Installed License Users
- Figure 22. Respondent' s Knowledge of Organization' s Business Software
- Figure 23. Respondent' s Role in the Procurement of Organization' s Business Software
