Document:                       MKT-349
Date of Publication:          May 25, 2007
Number of Pages:             5
Lead Author(s):                M. West, M. Koenig
Price:                              $295 USD

Perspective Summary:

While SaaS adoption has been exploding across all market segments in North America over the past two years, a quiet but steady growth in demand has likewise occurred in Western Europe .

In fact, our data suggest that European SaaS adoption will follow very similar patterns to what has occurred in North America , albeit with a 12-18 month lag. While the data initially surprised us, upon further analysis we believe it reflects the increasing level of comfort that centralized IT organizations have throughout the world, with SaaS increasingly being viewed as just another important arrow in their solution quiver.

At the same time, important differences between the two regions exist. This is illustrated by looking at adoption drivers in Europe vs. North America . These adoption drivers suggest that much of Europe is still focused on what Saugatuck refers to as Wave I-style SaaS (point solutions), even as their counterparts in North American begin to address the central challenge of Wave II – integrating tightly into the enterprise. 

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