Thursday, March 20, 2008

Disruptive Software as a Service

It won’t be long before enterprise software pricing strategies are totally dead - as the market for Software as a Service (SaaS) continues to grow at twenty five percent per year, and this trend is anticipated to continue through 2010.

Bill McNee, Founder and CEO of Saugatuck predicts that by 2012 more than thirty five percent of all new business software that is deployed will be delivered as SaaS. McKinsey also reports that forty six percent of companies with sales of over $billion will adopt SaaS as their main business model by 2007.

One of the major growth SaaS segments to watch is the Enterprise Content Management (ECM) market which is growing currently at thirty percent annually according to Gartner Group. Currently only two to three percent of the overall ECM market ($1.2B) is spent on hosted SW solutions (about $23M currently).

An interesting web content SaaS software company to watch is Crown Peak. CrownPeak SaaS Solutions include: Web Content Management, Search, Web Hosting, and Intranet/Extranets. They were recently named to eContent’s 100 most influential companies list, has won Product of the Year from InfoWorld and eWeek’s Analyst’s Choice Award, and named as one of the top 25 ASP’s worldwide by

With the large market for improved enterprise content management solutions, and the rapid growth of this sector, business models like CrownPeak have tremendous opportunity to service clients globally as the continued focus on operational efficiency and productivity of knowledge workers intensifies in our Flat World Economy.

During the last year, our firm partnered with WebEx to research and write a new book on the future of on demand business models (SaaS). This book is NOW released called Why Buy the Cow: How the On Demand Revolution Powers the New Knowledge Economy. This book was a commisioned book project which we did market research and supported the CEO of WebEx Subrah Iyar with his vision to share his lessons and other leader perspectives on SaaS. To order your copy on Amazon


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