SaaS vendors must collect customer insights for innovation and compliance.
As of the end of last year, about 30% of companies from our Forrsights Software Survey, Q4 2011, were using some software-as-a-service (SaaS) solution; that number will grow to 45% by the end of 2012 and 60% by the end of 2013. The public cloud market for SaaS is the biggest and fastest-growing of all of the cloud markets ($33 billion in 2012, growing to $78 billion by the end of 2015).
However, most of this growth is based on the cannibalization of the on-premises software market; software companies need to build their cloud strategy or risk getting stuck in the much slower-growing traditional application market and falling behind the competition. This is no easy task, however. Implementing a cloud strategy involves a lot of changes for a software company in terms of products, processes, and people.
A successful SaaS strategy requires an open architecture (note: multitenancy is not a prerequisite for a SaaS solution from a definition point of view but is highly recommended for vendors for better scale) and a flexible business model that includes the appropriate sales incentive structure that will bring the momentum to the street. For the purposes of this post, I’d like to highlight the challenge that software vendors need to solve for sustainable growth in the SaaS market: maintaining and increasing customer insights.
It’s not really a blog but it’s definitely post worth writing (OK, cut and pasting).
I missed CA World this year, as CA Technologies held a specific IT analyst event a few months earlier that I sadly couldn’t attend. And when I say “missed” I mean more than just “didn’t attend”; I really did miss the event that is CA World, particularly the people – both CA Technologies employees and their customers.
All is not lost, however, as not only were presentations available via the Web, CA Technologies has made a significant number of the IT service management (ITSM) and IT asset management (ITAM) presentations available post event:
“I remember when I lost my mind” … oops that’s Gnarls Barkley. I should have started with … I remember when software asset management (SAM) was on my radar as an IT service management (ITSM) practitioner. It was circa 2003, and my then employer was scared to death of the implications of non-compliance. We did some ground work but IMO it somewhat “died a death” when we realized that we had no idea where all the purchase records were – let’s assume they are all compliant now. Since then I have viewed SAM as just being on the to-do list for far too many organizations, never quite making it into the realms of actual “doing.” Sad but true.
Thankfully, however, my first three months at Forrester is changing this opinion – as 30% to 40% of my client inquiries relate to IT asset management (ITAM) and SAM (if you are interested the other 60% to 70% relate to ITIL adoption, process improvement, and ITSM tool selection – there’s a lot of tool replacement going on). SAM is rising from the ashes of its compliance era, in many ways this time “it’s all about the Benjamins.”