Focus Area: Software-as-Service

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	Research-based Market Strategy Consulting

Focus Area: Software-as-a-Service (SaaS)

Saugatuck's Software-as-a-Service research and consulting practice focuses on the rise of Software-as-a-Service (SaaS) as an alternative software delivery and business model. Our research shows that companies are attracted to SaaS as a strategy to cut costs, improve service delivery and faster RIO through faster implementations. In some cases, it also reflects a desire by users to shift expenditures from the cap-ex budget to the op-ex category.

Software-as-a-Service represents a significant disruptive force for the IT industry. Among the most important challenges for both net-native start-ups bringing new innovation to market as well as established players adding SaaS to their portfolio of offerings are significant go-to-market issues, internal management issues and investor management issues.

Earlier research published by Saugatuck in 2003 and 2004 suggested that large enterprises would lead SaaS adoption through 2005. However, recent research indicates that SMB executives now see SaaS as “ready for prime time,” and are convinced that SaaS is a viable business-critical platform. This is especially true for back-end database driven applications such as human resources, financials/ERP, CRM and various collaboration requirements (e.g., eMail), as well as highly distributed applications such as sales force automation and field support.

Representative Consulting Engagements

	Buyer adoption forecasts and profiles by segment
	Purchase decision criteria, process and priorities
	Competitive and market assessments
	The intersection of SaaS, SOA and Open Source
	The intersection of SaaS and BPO
	Emerging pricing and licensing models
	The impact and role of advertising-supported SaaS
	Emerging SaaS aggregation platforms
	Market opportunity analysis and targeting
	Market positioning and messaging for both vertical and horizontal segments
	Emerging business model considerations, including valuation and product/positioning transitions

Relevant links to Published Saugatuck Research Topics

	Business Applications
	Emerging Trends / Technologies
	IT Ecosystem
	Open Source
	Software-as-a-Service (SaaS)
	The IT Utility
	Web Services / SOA


	Featured Research Reports Great Expectations: SaaS Strategies in the Finance Organization The Finance organization sees SaaS as increasingly critical to their evolving business goals, and is increasingly investing in SaaS for point financial processes as well as core systems of record. Senior Finance executives within all types and sizes of user firms expect to use Software-as-a-Service (SaaS) to improve their abilities to meet critical business goals, as well as Finance’s abilities to play a more strategic role. Click here to find out more Transition to SaaS: An ISV Cookbook Software-as-a-Service (SaaS) is increasingly considered “enterprise grade” by many IT buyers, and a viable choice to achieve reduced costs, improved service, and ongoing timely functional currency. As a result, many established independent software vendors (ISVs) are faced with strategic questions that will determine the future of their companies: Will buyers continue to purchase and deploy new perpetual licensed-based software? Should our company begin developing SaaS-based offerings? – If so, when? What is the best roadmap to follow to “SaaS-ify” my business? Click here to find out more Power, Speed and Assimilation: Open Source Changes the Industry, and the Industry Changes Open Source From 2005 through 2007, Saugatuck described how open source software would change the software industry, from how users buy and deploy business software to vendor business models and development strategies. In 2008, we found that the key changes that we predicted had already occurred, or where occurring now - as much as two years ahead of the expected timeframe. In short, we found that open source as already changed the software business as we knew it. But as a result, the software business has changed open source as well. Click here to find out more Different Wavelengths: SMBs, Change, and SaaS Adoption The most aggressive SaaS adopters are small and mid-sized businesses (SMBs). But SMB SaaS adoption is not what it seems. Providers are missing their targets, even while SaaS changes core SMB business and infrastructure strategies. Saugatuck’s new study of acquisition, adoption, and management focuses on challenges unique to smaller firms - and to SaaS providers. Click here to find out more __________

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