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: CRM, ERP, SCM, HR, Salesforce
automation, and Web collaboration applications.
In-Stat also questioned respondents about their use of Microsoft Office-esque
productivity applications (word processing, spreadsheet, and presentation
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 is broken out into two sections; the first focuses on demand for
business function-related SaaS applications, the second focuses on demand for
SaaS productivity applications. Covered are the crucial reasons why businesses
are or are not interested in these applications, as well as who they turn to
as providers.
Survey data showing SaaS adoption drivers and inhibitors is segmented into four vertical markets:
- Education
- Government
- Healthcare
- Professional Services
Survey data from these four vertical markets is presented and compared to
results from respondents across the entire US market.
A forecast of total US business application hosting revenues through 2012 is
also included.
Table of Contents
- Executive Summary
- Definition of Applications in Survey:
- Business Management Application Usage
- Survey Guidance Given to Respondents
- Take Rates for Hosted Applications Vary by Function
- Hosted Deployments Lag In-House Deployments
- Business Management Application Implementations by Vertical Market
- Customer Relationship Management-Type Application Implementations by
Vertical Market
- Enterprise Resource Planning-Type Application Implementations by
Vertical Market
- Human Resources/Talent Management-Type Application Implementations by
Vertical Market
- Supply Chain Management-Type Application Implementations by Vertical
Market
- Web Collaboration-Type Application Implementations by Vertical Market
- Current Hosted Application Users Satisfied With Services
- Satisfaction With Hosted Business Management Applications by Vertical
Market
- Multiple Factors Seen as Important Benefits of SaaS Business Applications
- Important Potential Benefits of Using Hosted Business Applications by
Vertical Market
- Hosted Business Applications Offer Savings of 34% Compared to Installed
Applications
- Annual Savings of Using Hosted Applications by Vertical Market
- What Leads to Dissatisfied Hosted Business Management Ap Users?
- Main Reasons for Using Hosted Business Aps Less in the Future by
Vertical Market
- Who Do Users of Hosted Applications Turn To?
- Type of Provider Used for Business Management Applications by Vertical
Market
- Why Are Businesses Not Using SaaS?
- Why the Lack of Interest in Hosted Business Management Applications?
- Main Reason for Lack of Interest in Hosted Applications by Vertical
Market
- Office Productivity Applications
- Current Office Productivity Applications Usage
- Office Productivity Application Implementations by Vertical Market
- Current Hosted Office Productivity Applications Users
- What Are the Adoption Drivers for Current Hosted Application Users?
- Important Potential Benefits of Using Hosted Productivity Applications
by Vertical Market
- Satisfaction With Hosted Office Productivity Applications is Good, But
Not Great
- Level of Satisfaction With Using Hosted Productivity Applications by
Vertical Market
- Recommending Using Hosted Productivity Applications by Vertical Market
- Future Usage of Hosted Productivity Applications by Vertical Market
- What Would Current Users Be Willing to Pay For?
- Features Desired from Hosted Productivity Application Users by
Vertical Market
- Who Do Current Users Turn to as Providers of Hosted Applications?
- Types of Providers of Hosted Productivity Applications by Vertical
Market
- Future Office Productivity Application Plans by Vertical Market
- Current Installed Users Who are Going to Switch to or Try Hosted
Applications
- Why Try Hosted Applications?
- Important Potential Benefits of Hosted Productivity Applications by
Vertical Market
- Who Will They Turn to as Providers of Hosted Applications?
- Providers Turned to for Hosted Productivity Applications by Vertical
Market
- Current Installed Users With an Interest in Hosted Applications
- Can Anything Stoke the Interest of Installed-License Users in Hosted
Applications?
- Interest in Hosted Productivity Applications by Vertical Market
- What Drives Interest in Hosted Office Productivity Applications Among
Curious Office Users?
- Important Potential Benefits of Hosted Productivity Applications by
Vertical Market
- Steadfast Installed Users
- Why the Lack of Interest in Hosted Productivity Applications?
- Main Reason for Disinterest in Hosted Productivity Applications by
Vertical Market
- Summary
- Methodology
- Vertical Definitions
- Glossary
- Related In-Stat Reports
- Appendix
List of Tables
- Table 1. US Business Application Hosting Revenues 2007 - 2012
- Table 2. Private Sector Firms More Likely to Use Business Management
Applications
- Table 3. Healthcare Market Among Most Satisfied With Hosted Business
Management Applications
- Table 4. Scalability and Accessibility of Hosted Applications are Crucial
Benefits
- Table 5. Professional Services Market Most Likely to Save With SaaS
- Table 6. Reasons for Churn Vary by Vertical Market
- Table 7. Software Companies Turned to Most Often as SaaS Provider by All
Four Major Vertical Markets
- Table 8. Reasons for Disinterest in SaaS Vary Greatly by Vertical Market
- Table 9. Education Market the Least Likely to Use Hosted Productivity
Applications
- Table 10. Potential Benefits of Hosted Productivity Applications Vary
Across Vertical Markets
- Table 11. Government Users of Hosted Productivity Applications Less Than
Satisfied
- Table 12. Hosted Productivity Application Users in Education Market Most
Likely to Recommend Them
- Table 13. Healthcare Market Most Likely to Use Hosted Productivity
Applications More in Next Year
- Table 14. Healthcare Market Shows Interest in Additional Features
- Table 15. Most Vertical Markets Look to Software Companies for Hosted
Productivity Applications
- Table 16. Professional Services Market the Most Likely to Experiment With
Hosted Productivity Aps
- Table 17. Importance of Potential Benefits of Hosted Productivity
Applications Vary by Vertical Market
- Table 18. Software Companies the Most Likely Provider of Hosted Aps Across
All Vertical Markets
- Table 19. Private Sector Firms Slightly More Interested in Hosted
Applications Than Public Firms
- Table 20. Important Potential Benefits of Hosted Productivity Applications
by Vertical Market
- Table 21. Reasons for Disinterest in Hosted Productivity Applications Vary
Across Vertical Markets
- Table 22. Business Management Application Implementation Status
- Table 23. Non-SaaS User Interest in Trying Hosted Applications in Next 12
Months
List of Figures
- Figure 1. Total US Market View of Business Management Application
Implementations
- Figure 2. More Than One-Third of Professional Services Market Addressable
for Hosted CRM
- Figure 3. Roughly Only One in Ten Firms Have No Plans for ERP
Implementations
- Figure 4. Few New HR/Talent Management Application Implementations in the
Healthcare Market
- Figure 5. Private Sector Firms the Most Likely to Implement Hosted
SFA-Type Applications
- Figure 6. Only 2% of Public Sector Firms Plan New Hosted SCM-Type
Application Implementations
- Figure 7. Web Collaboration Applications the Most Likely Applications to
be Hosted
- Figure 8. Over 80% of Current Hosted Business Ap Users Will Use Them as
Much or More in Next Year
- Figure 9. TCO Not the Only Benefit to Current or Future SaaS Users
- Figure 10. Only 4% Say There is No TCO Benefit to Hosted Business
Applications
- Figure 11. Security and Poor Support Leading to Churn
- Figure 12. Software Companies Turned to Most Often as Hosted Applications
Providers
- Figure 13. Little Interest in Hosted Applications Among Current Non-Hosted
Applications Users
- Figure 14. Reasons for Disinterest in Hosted Applications Vary by Size of
Business
- Figure 15. Traditional Licenses Solely Used by Three-Quarters of US Market
- Figure 16. Multiple Benefits Resonate With Current Hosted Productivity
Applications Users
- Figure 17. Majority of Current Hosted Applications Users Only Moderately
Satisfied
- Figure 18. Four Out of Five Users Would Recommend Using Hosted
Productivity Applications
- Figure 19. 83% of Hosted Productivity Applications Users Plan to Use as
Much or More in Next Year
- Figure 20. Providers Could Potentially Charge for Extra Features
- Figure 21. Preferred Providers of Hosted Productivity Applications Vary
- Figure 22. Not Much Demand for Hosted Applications Expected Among Current
Installed License Users
- Figure 23. TCO and Accessibility are Key Potential Benefits for the
Hosted-Curious
- Figure 24. Pure-Play Productivity Applications Providers Will See Market
Share Gains in Next Year
- Figure 25. Not Much Interest in Using or Trying Hosted Applications Among
Current Installed Users
- Figure 26. Same Benefits Resonate With Hosted-Curious Installed
Productivity Users
- Figure 27. Lack of TCO Benefit the Main Reason for Disinterest among
Installed License Users
- Figure 28. Respondents' Knowledge of Organization' s Business Software
- Figure 29. Respondents' Role in the Procurement of Organization' s Business
Software
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