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Summary:

The next generation of highly successful software as a service (SaaS) companies will likely focus on delivering collaboration and IT management, according to a report out today from Forrester Research. The report takes a look at the SaaS infrastructure and lays out the case for continued […]

The next generation of highly successful software as a service (SaaS) companies will likely focus on delivering collaboration and IT management, according to a report out today from Forrester Research. The report takes a look at the SaaS infrastructure and lays out the case for continued SaaS adoption among certain groups of applications (see chart).

What caught my eye, though, was that professional services firms were building up support for various SaaS applications such as Safesforce.com and GoogleApps. As such an ecosystem develops around software as a service, it’s clear to me that the phenomenon, which essentially requires trusting a service based in the cloud, heralds the eventual acceptance of actual cloud computing, where IT infrastructure is delivered from the cloud. Because, if a business is already exporting its proprietary customer information to outside providers, its servers won’t be too far behind — especially in this economic environment.

saas

  1. Stacey- Forrester famously predicted Amazon would go out of Business some years ago, so worth taking their insight with a pinch of salt!

    Is Forrester suggesting here that based on 2008 survey, lesser companies are interested in SaaS adoption compared to 2007? That seems counter-intuitive, I would expect more interest unless the respondents haven’t understood what SaaS means.

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  2. Exactly.

    There is precious little being said by the major players in the infrastructure and operations management categories (e.g. HP, BMC, CA, and IBM). It appears that the greatest opportunity for massive market disruption will come from companies delivering SaaS offerings for cloud and IT management. You still need to monitor your infrastructure when you move some of it into the cloud and a bifurcated IT environment (some on prem and some in the cloud) will make that even more difficult.

    Businesses have been hurt by massive enterprise software IT management implementation failures and are generally fatigued by the lack of innovation that is taking place by the traditional vendors. And the same is true for MSPs, who are now looking for a multi-tenant, SaaS based environment to manage hundreds or thousands of their clients.

    Brian de Haaff
    CEO
    Paglo
    IT Management SaaS
    http://www.paglo.com

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  3. Exactly.

    There is precious little being said by the major players in the infrastructure and operations management categories (e.g. HP, BMC, CA, and IBM). It appears that the greatest opportunity for massive market disruption will come from companies delivering SaaS offerings for cloud and IT management. You still need to monitor your infrastructure when you move some of it into the cloud and a bifurcated IT environment (some on prem and some in the cloud) will make that even more difficult.

    Businesses have been hurt by massive enterprise software IT management implementation failures and are generally fatigued by the lack of innovation that is taking place by the traditional vendors. And the same is true for MSPs, who are now looking for a multi-tenant, SaaS based environment to manage hundreds or thousands of their clients.

    Brian de Haaff
    CEO
    Paglo
    IT Management SaaS
    http://www.paglo.com

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  4. On our recent blog post we chat about What SaaS is and how it’s changing the game and is making industry giants look at how they are operating. You’re no longer tied to a single computer to access your files and do your work. You’re not even tied to a computer! You can start working on something on your computer and then use your web enabled phone to edit the document or send it to a client. With SaaS users don’t have to worry about their computer crashing or losing their data – because everything they’ve uploaded to their webtop sits on a cloud elsewhere.

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  5. Whatever happened to the ASP (application service provider) moniker?

    Is SaaS not the same as ASP?

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  6. Don’t get me started on SaaS vs. ASP…too late. Legacy vendors are turning to the ASP model to serve up their old client / server software and calling it SaaS. True SaaS is a new, Net-native application that is consumed and delivered via the Internet.

    It is up to consumers to ask the right questions to make sure they get real benefit from SaaS.

    The ASP model died once. I predict it will die again at the hands of the traditional software vendors who couldn’t adopt to the disruption of true SaaS. The big software vendors may have enough cash to sustain fake SaaS for a time, but customers will see through the charade.

    Brian de Haaff’s comments are spot on. Resist a legacy of bad IT management software from the big four.

    Rhett
    Service-now.com

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  7. [...] GigaOM has good commentary about the trends in cloud computing and how SAAS is growing up and strengthening the cloud computing model. This is also a validation of the online/offline collaboration model which is being made popular by Google Apps and the availability of economically priced Netbooks (priced around $300) which are a great replacement for laptops for many users. The next generation of highly successful software as a service (SaaS) companies will likely focus on delivering collaboration and IT management, according to a report out today from Forrester Research. The report takes a look at the SaaS infrastructure and lays out the case for continued SaaS adoption among certain groups of applications (see chart). [...]

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  8. Brian said it all. Innovation is the name of the game, clients are open and listening. As more MSPs come on line, you’ll see a sea of change. Took a look at your company Brian – very interesting!

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  9. Moving all the applications to SalesForce like model is problematic if one does not want to commit to them.
    On the other hand rewriting all the on premise applications from scratch is also going to take a lot of time.
    Therefore the success of SaaS does not predict exactly the success of current cloud computing.
    Clouds that could run the current enterprise applications unchanged might be able to bridge the gap, since they allow to use Infrastructure as a service benefits without rewriting all the IT.

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  10. SaaS definitely has a place in corporations in the future. Software packages have become way too complicated or costly for even experienced IT departments to manage, especially in this era where integration of data and services is key and makes the technology and management of it even more complicated. SaaS places the burden of maintenance in the hands of the experts, the people who built the software, freeing IT departments from having to manage complex technology. SaaS has the benefit of reducing IT cost while giving all the benefits of the software to users. I don’t see a downside.

    But it does take a rethink of the software and how it should best work in a hosted environment with all the considerations of security and privacy while leveraging the opportunities that information can now beneficially be shared in ways that were never possible before.

    Eric

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