Global Application Service Providers\Software-As-A-Service (Saas) Industry

• Publication date: January 2012

The global outlook series on Application Service Providers/SaaS provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a rudimentary overview of the industry, highlights latest trends, demand drivers and competitive scenario, in addition to providing statistical insights. Regional markets briefly abstracted and covered include the United States, Canada, Europe (France, Germany,...

The global outlook series on Application Service Providers/SaaS provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a rudimentary overview of the industry, highlights latest trends, demand drivers and competitive scenario, in addition to providing statistical insights. Regional markets briefly abstracted and covered include the United States, Canada, Europe (France, Germany, Italy, UK, Spain and Rest of Europe), Asia Pacific (including Japan) and Rest of World. The report offers a compilation of recent mergers, acquisitions, and strategic corporate developments. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 252 companies worldwide.

Global Business Software Industry

1. INDUSTRY OVERVIEW 1
Down the Time Lane.. 1
Evolution of SaaS Model 1
SaaS Evolution 2
Software-as-a-Service (SaaS): A Quick Primer 3
Traditional Enterprise Software Model Vs. ASP/SaaS Model 3
Why Software-as-a-Service (SaaS)? 4
Application Suites Versus Best-of-Breed Products 5
Best-of-Breed Products and Services 5
Applications Growing Abound for SaaS 5
Numbers Speak 6
Table 1: World Recent Past, Current & Future Analysis for
SaaS Applications Market by Geographic Region - US, Canada,
Europe, Asia-Pacific (Including Japan) and Rest of World
Markets Analyzed with Annual Revenue Figures in US$ Million
for Years 2010 through 2015 7
Enterprise Software Applications - A Prelude 7
SaaS-based Enterprise Applications by Select Category - Front
Office, Back Office, Desktop, and Collaboration 8
Leading SaaS Enterprise Application Software Vendors/
Providers by Application Segment 9
Leading SaaS Applications 10
Customer Relationship Management - A Key Application Area for
SAAS 10

2. END-USE INDUSTRY - AN OVERVIEW 11
Industry/Vertical Specific Applications Gain Traction 11
SaaS for Insurance Sector Still in Nascent Stage 11
Other Potential 11

3. TRENDS & ISSUES 12
SaaS Witnesses Uneven Growth Within Software Segments 12
Public Cloud Computing, a Major Growth Driver for IT Sector 12
Cloud-Computing Fuels Growth in Managed Security Services 13
SaaS Market Geared for Expansion 13
SaaS Solutions to Grow Faster than Licensed Software 13
SaaS Leads Global Cloud Computing Market 14
Global SaaS, PaaS, IaaS Markets to Surge In the Near Term 15
Table 2: Global SaaS Market (2010): Percentage Share of
SaaS-based Software Segments in SaaS Solutions Market 15
CRM and CCC Drive Growth in SaaS Industry 16
SaaS Market to Double Through 2014 16
Saas-Based ERP Sector to Grow Worldwide 16
SaaS Gains Traction in Emerging Markets 17
SaaS Penetrates Commercial Email Sector 18
Law Firms Increasingly Leverage SaaS/Cloud Computing 18
Economic Recession Boosts Demand for SaaS Solutions 18
SaaS and Cloud Computing Vendors Witness Rapid Growth 19
Table 3: Global Enterprise Software Market (2010): Percentage
Share Breakdown of Annual Demand by Leading Regions 19
Internet Backs ‘On-Demand’ Success 20
On-Demand Software Finds Edge 20
Ad-Supported Revenue - A Key Driver for On-Demand Software 20
SaaS: Conquering Unexplored Domains 20
Moving Beyond SMBs 21
Software Vendors and IT Solution Providers Adopting
Subscription-Based Business Model 21
Challenges to Reckon With 21
Limited Flexibility 22
Security and Privacy: A Matter of Concern 22
Other Pitfalls of the SaaS Approach 23
Ad Hoc Support Services: A Growing Trend 23

4. MARKET DYNAMICS 24
SaaS Gathers Steam 24
Limited Client Base - No Longer a Major Deterrent 24
Where Do VARs Stand in SaaS Space? 24

5. COMPETITIVE LANDSCAPE 26
Competitive Overview 26
Leading Vendors and Market Presence 26
Pure Play Vendors’ Pure Domination 27
Large Vendors Turn Market Followers 27
Latecomers, But Potential Challengers 28
Leading On-Demand Software Vendors and Vendor Offerings by
Software Segment 28

6. APPLICATION SERVICE PROVIDER - AN INSIGHT 30
Need for Application Service Providers 30
Classification of ASPs by Area of Focus 30
Specialist/Functional ASPs 30
Regional/Local ASPs 31
Enterprise ASPs 31
Volume Business ASPs 31
Vertical Market ASPs 31
Classification of ASPs by Applications and Services Provided 31
Applications 31
Vertical Applications 31
Analytical Applications 32
Personal Applications 32
CRM Applications 32
ERM Applications 32
Collaborative Applications 32
Services 32
Core Services 32
Managed Services 32
Extended Services 32
An ASP Model 33
Components of ASP 33

7. SaaS - A REGIONAL PERSPECTIVE 34

7a. THE UNITED STATES 34
US Market Leads the SaaS Industry 34
Table 4: US Recent Past, Current & Future Analysis for SaaS
Applications Market Analyzed with Annual Revenue Figures in
US$ Million for Years 2010 through 2015 34
Market Trends 35
SMEs Develop Interest in SaaS Solutions 35
SaaS Market Resilient to Recession 35
Differentiation - the Buzz Word 35

7b. CANADA 36
Outlook 36
Table 5: Canadian Recent Past, Current & Future Analysis for
SaaS Applications Market Analyzed with Annual Revenue Figures
in US$ Million for Years 2010 through 2015 36

7c. EUROPE 37
Major Market Trends 37
European Cloud Computing Market Outpaces US 37
Table 6: European Recent Past, Current & Future Analysis for
SaaS Applications Market by Geographic Region - France,
Germany, Italy, UK, Spain and Rest of Europe Markets
Analyzed with Annual Revenue Figures in US$ Million for
Years 2010 through 2015 38

Table 7: Western Europe SaaS Applications Market (2010):
Percentage Breakdown of Country by Rate of Adoption 39
Adoption of SaaS Rising Rapidly in Europe 39
CRM Market Holds Potential for Expansion 40
Poor Connectivity, Security Concerns Hamper Russian SaaS Market 40

7d. ASIA-PACIFIC 41
SaaS Market in Perspective 41
Growth Drivers and Inhibitors in a Nut Shell 41
Going Beyond CRM 42
Competitive Landscape 42
Major Market Trends 43
SaaS Industry Witnesses Robust Growth in Asia Pacific 43
Table 8: Asia Pacific Recent Past, Current & Future Analysis
for SaaS Applications Analyzed with Annual Revenue Figures
in US$ Million for Years 2010 through 2015 43
Demand for Cloud-based CRM Drives Growth in Asia Pacific 44
Penetration of On-Demand ERP in Asia Pacific to Increase
Steadily 44
Analysis by Region 45
Japan 45
Market Trends 45
Japanese SaaS Market Focused on Large Enterprises 45
SaaS-Based ERP Solutions Market Continues Upsurge 45
China 46
Regulatory Framework for SaaS in China 46
Major Market Trends 46
Chinese Market Holds High Potential for SaaS Services 46
Table 9: Chinese SaaS Market (2010): Percentage Share
Breakdown of Annual Revenues By Leading Providers 47
Government Initiatives Aid Growth of Cloud Computing 47
ERP Solutions Gain Popularity in China 48
India 48
Overview of Indian SaaS Market 48
Table 10: Indian SaaS Solutions Market (2010): Percentage
Share Breakdown of Annual Demand for Product Segments 49
Major Growth Stimulants 50
Telecom Companies Enter SaaS Domain 50
Rapidly Expanding Internet Infrastructure 50
Customized Business Models and Pricing 50
Major Growth Restraints for SaaS Adoption 50
Major Market Trends 51
India to Emerge as Global Service Hub for Cloud Computing 51
Widespread Adoption of SaaS by Indian SMBs 52
Increasing Diversity of SaaS Offerings for SMBs 52
High Potential for SaaS-based Security Solutions 53
Indian Telecom and ISP’s to Offer Cloud Services 53
Cloud Computing Adoption Varies Among Industry Segments 54
SaaS-Based CRM Solutions Gaining Popularity 54
Taiwan 55
Market Trend 55
Taiwan, a Hot Spot for Cloud Computing Data Centers 55

7e. REST OF WORLD 56
Outlook 56
Table 11: Rest of World Current & Future Analysis for SaaS
Applications Market Analyzed with Annual Revenue Figures in
US$ Million for Years 2010 through 2015 56

8. PRODUCT INTRODUCTIONS/LAUNCHES 57

9. STRATEGIC CORPORATE DEVELOPMENTS 95


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