Analysts: Where is (and isn't) SaaS headed?

By Jacqueline Emigh | Published March 17, 2009, 10:31 AM

SaaS is now moving toward greater success in online backup, Web conferencing, and some other areas, but not really in either integration or business intelligence, say Forrester Research analysts.

Software-as-a-service (SaaS) originally got off the ground with customer relationship management and human resources applications, Forrester notes in a new report. But although SaaS will keep gaining ground in those two areas, SaaS will also pick up considerable momentum in online backup, Web conferencing, collaboration, and IT systems management, the analysts predict.

New applications in integration and BI will also spring up, but these will show only limited success, according to the report.

"Firms should not expect any magic integration solutions, SaaS or otherwise," Forrester warned in a summary of the report. Furthermore, for its part, the SaaS BI space is still "largely unproven," with many users "still skeptical as to its potential, particularly where large volumes and real-time data transfer are concerned."

Among the applications expected to show significant success, Web conferencing is "an ideal candidate for SaaS, and many companies are comfortable using the technology as SaaS," the analysts observed. "Forrester's market data has shown SaaS collaboration to be one of the hotter areas of SaaS adoption."

ITSM applications are also already growing in popularity, although many of the larger vendors haven't yet entered this market.

Online backup is evidencing strong interest, as well, particularly among small and medium-sized businesses (SMBs), individual PC users, and branches of enterprises in remote locations. Yet one area of concern for SaaS backup revolves around "recovering large quantities of data in a short time frame."

Comments

View comments by with a score of at least

I believe you're right. SaaS is becoming more prevalent now with bandwidth being improved in many countries. I've used google mail and calendar frequently from my business and I always backup my work computers to an online storage company (http://www.myotherdrive.com)

Score: 0

|

the domains in which SaaS solutions are the most popular are online collaboration and productivity - document collaboration, document storage, calendars, contact management, tasks, shared workspaces etc. Another upcoming area is messaging, especially for small to mid sized businesses who cannot afford in house solutions like MS Exchange. SaaS based messaging companies like HyperOffice (http://www.hyperoffice.com), which figure prominently in the "exchange alternative" domain, offer compelling solutions for this segment.

Score: 0

|

Google Apps is a great example of this.. Amazing backups people are willing to put their backups in the "cloud" where it can be copied lots of times....

Score: -1

|

Report: Microsoft to randomize Europe's browser screen choices

The fact that "A" is for "Apple" was apparently at the heart of browser vendor objections to Microsoft's alternative to listing IE first.

Acer eclipses Dell for #2 spot in global PC shipments, says iSuppli data

It literally does look like a 360-degree turnaround in Dell's fortunes, as the bells of bad tidings now toll solely for Dell.

Microsoft, don't hang up on Windows Mobile, but do call for help

Only a Manhattan Project can save Microsoft's phone strategy now.

See ya later, WinMo: Microsoft's mobile strategy needs a reboot

Carmi Levy | Wide Angle Zoom: Hands up if you're considering upgrading to a Windows phone for the holidays...Anybody?

Playing catch-up in 2010: Windows Mobile, BlackBerry, and Symbian

Microsoft, RIM, and Nokia are each working on improved mobile operating systems. But could these efforts add up to too little, too late?

Will Nokia's plans further alienate American consumers?

A look at Nokia's plans for the coming years does little to shine up the company's increasingly dull image.

Bing bonked by service outage Thursday, Microsoft configured the wrong server

It's always nice to have a backup, but it's even nicer to remember which one is the backup. That's the lesson Bing's admins learned yesterday evening.

Survey reveals there are more women then men, including on social networks

If you think you can market your products and services online as though you're selling car batteries in the middle of halftime, think again. And again.

Android team updates 'Donut' and 'Eclair' SDKs

The Android SDK includes components which optimize app development for each version of the mobile operating system. Today, the 1.6 and 2.0 components got updates.

The Black Screen Syndrome, or, Tech news in search of the apocalypse

Scott Fulton On Point: This is a story about something that should not have been a story, about something that at one time was a story.

Online advertising evolves away from display, toward interactive software

Marketing departments and agencies are increasingly establishing positions for "creative technologists" who can steer designers and developers toward platforms that enable direct connections with consumers.