Home Resources Blog Software as a Service: Borrowing Software from the Cloud

Software as a Service: Borrowing Software from the Cloud

Admin Globaldots
26.03.2013
image 3 Min read

Based on what you can do with the cloud, i.e. remotely located computers that use an independent server system to store data and run applications, we can describe many cloud services available today. One of which is the Software-as-a-service model, more popularly known as – SaaS. The whole myriad of Google Apps is a fine example; Google Mail, Google Docs, Google Talk. These are free for the user, but usually the application is rented, while application software is installed and operated from a cloud network. Monthly fees for this type of service are considerably lower than a price of a licensed copy of an application. Plus, no additional investment needs to be made in the machinery, in order to run everything smoothly.

Clients love SaaS for its simple upkeep, all new features are automatically added online, bugs and errors are treated faster than with IT staff, all the data backups already exist on the cloud, and moreover, the functions are independent of your operating system. All software application functions are accessed using only a browser and an internet connection.

 

Market Share: Only 4%

However, all benefits considered, and the investment involved and all the giants that set up the market, e.g. Salesforce, Oracle, SAP, Microsoft etc., SaaS still only accounts for the 4% of sales compared to packaged software.

SaaS_vs_licensed

Image 1 – SaaS sales compared to Software Package sales (infographic by Staff.com)

According to Forrester, the SaaS software market will grow by 25% this year, to $59 billion. By 2014, they expect, it is to grow further to $75 billion – source – TechCrunch.

SaaS software market is to grow simultaneously with the number of smart computing products, far faster than the overall software market. Smart computing implies apps that provide direct access to to data that is used for decision making purposes.

 

US: The Leading SaaS Tech Buyers

US tech buyers are expected to make the biggest adjustment, as the US economy invests in technology, reaching a strong demand for new mobile, cloud and smart technologies. The market is to expected to grow by 5% in 2013, and by 6-7% in 2014. Europe will fall behind a bit due to its economic problems, and in the East-Asia Pacific, Japan will slowly but surely pick up from the Fukushima disaster, and China will see a rise in this market, after a 2012 slowdown; source – OpenView blog.

top_SaaS

Image 2 – Top SaaS companies: Salesforce, SAP and Oracle

The number of mobile Web users all over the world has now topped 1 billion, and mobile market is expected to drive more than 50% of all IT market growth. This will set new challenges to SaaS software developers. As well as considering the growing usage of tablets.

 

SaaS Companies to Watch

The year 2013 brought many presumptions about who will continue, in terms of business companies, to dominate the SaaS market, and who is yet to arise. We bring a short sum-up list of the SaaS companies to watch from the Computer World:

  • Salesforce: no.1 player in the SaaS market, a pioneer in the SaaS market
  • SAP: the German software giant, came big to SaaS during the past year
  • Oracle: Oracle’s core expertise is in human capital management and databases
  • Microsoft: more moves into SaaS market are expected
  • Workday: SaaS financials and HCM vendor
  • Intuit: millions of small businesses use Intuit’s QuickBooks software
  • Zuora: provides billing, e-commerce and finance modules
  • Single sing-on for SaaS: Okta, Ping Identity, OneLogin
  • Cloud ERP for manufacturers: NetSuite, Plex Systems, Kenandy

Learn More

What is FinOps? The Complete Guide
Cloud Cost Optimization
Nesh (Steven Puddephatt), Senior Solutions Engineer @ GlobalDots 31.05.23

While cloud-computing supports immense innovation – providing limitless resources in the pursuit of greater output and agility – public cloud end-user spending is projected to reach a staggering $600 billion this year. Hyperscale cloud vendors remain driving forces behind this growth, having proven their salt as highly strategic launchpads for digital transformation. The competition for […]

Read more
Cloud Cost Optimization: A Strategic Approach to Business Expansion
Cloud Cost Optimization
Francesco Altomare, Southern Europe Regional Manager @ GlobalDots 18.05.23

FinOps is a strategic framework designed to manage and optimize cloud costs effectively. It’s a transformative approach that brings financial accountability to the forefront of the variable spend model of cloud computing. This model allows businesses to gain a firm grip on their cloud expenses, ensuring that every dollar spent is accounted for and utilized […]

Read more
AWS Data Transfer Cost Optimization: Everything You Need to Know
Cloud Cost Optimization
Nesh (Steven Puddephatt), Senior Solutions Engineer @ GlobalDots 17.05.23

While AWS services provide a wealth of mission-critical services – storing over 2.2 trillion objects in S3 – many organizations are left floundering in the solution’s complex pricing structures. Spanning transfer types and geographies, data transfer costs can be hugely unpredictable and rapidly get out of hand.  Below, we leverage decades of industry experience to […]

Read more
Unlock Your Cloud Potential
Schedule a call with our experts. Discover new technology and get recommendations to improve your performance.
Book a Demo