Executive Briefings

Software as a Service Is No Game Changer. Not Yet.

SaaS continues to gain momentum, but pure-play SaaS companies such as Salesforce.com, NetSuite, Workday, and even Google aren't likely to steal a big chunk out of the enterprise software market within the next few years. Most large, global companies won't walk away from their heavy investments in companies like Microsoft, Oracle and SAP, which enjoy massive customer and partner ecosystems and consistently good earnings and revenue growth.
The big software companies still have the upper hand, and SaaS won't destroy it. Rather, the success of SaaS in 2009 will depend on to how much support it gets from the established vendors.
Source: Information Week

SaaS continues to gain momentum, but pure-play SaaS companies such as Salesforce.com, NetSuite, Workday, and even Google aren't likely to steal a big chunk out of the enterprise software market within the next few years. Most large, global companies won't walk away from their heavy investments in companies like Microsoft, Oracle and SAP, which enjoy massive customer and partner ecosystems and consistently good earnings and revenue growth.
The big software companies still have the upper hand, and SaaS won't destroy it. Rather, the success of SaaS in 2009 will depend on to how much support it gets from the established vendors.
Source: Information Week