Product Type: Market Research Report
Published by: In-Stat
Published: June 2008
Product Code: R97-3151Description SaaS (Software as a Service) is creating a lot of hype in the market place as an alternative to traditional, installed licenses for business management applications. In its March 2008 SaaS survey, In-Stat asked US-based survey respondents about their usage of six specific business function-related applications delivered in the SaaS model: CRM, ERP, SCM, HR, Salesforce automation, and Web collaboration applications.
In-Stat also questioned respondents about their use of Microsoft Office-esque productivity applications (word processing, spreadsheet, and presentation applications) delivered as a service specifically to gauge the impact that SaaS productivity applications might have on Microsoft's dominant position in this space.
This report is broken out into two sections; the first focuses on demand for business function-related SaaS applications, the second focuses on demand for SaaS productivity applications. Covered are the crucial reasons why businesses are or are not interested in these applications, as well as who they turn to as providers.
Survey data showing SaaS adoption drivers and inhibitors is segmented into four vertical markets:
- Education
- Government
- Healthcare
- Professional Services
Survey data from these four vertical markets is presented and compared to results from respondents across the entire US market.
A forecast of total US business application hosting revenues through 2012 is also included.
Table of Contents - Executive Summary
- Definition of Applications in Survey:
- Business Management Application Usage
- Survey Guidance Given to Respondents
- Take Rates for Hosted Applications Vary by Function
- Hosted Deployments Lag In-House Deployments
- Business Management Application Implementations by Vertical Market
- Customer Relationship Management-Type Application Implementations by Vertical Market
- Enterprise Resource Planning-Type Application Implementations by Vertical Market
- Human Resources/Talent Management-Type Application Implementations by Vertical Market
- Supply Chain Management-Type Application Implementations by Vertical Market
- Web Collaboration-Type Application Implementations by Vertical Market
- Current Hosted Application Users Satisfied With Services
- Satisfaction With Hosted Business Management Applications by Vertical Market
- Multiple Factors Seen as Important Benefits of SaaS Business Applications
- Important Potential Benefits of Using Hosted Business Applications by Vertical Market
- Hosted Business Applications Offer Savings of 34% Compared to Installed Applications
- Annual Savings of Using Hosted Applications by Vertical Market
- What Leads to Dissatisfied Hosted Business Management Ap Users?
- Main Reasons for Using Hosted Business Aps Less in the Future by Vertical Market
- Who Do Users of Hosted Applications Turn To?
- Type of Provider Used for Business Management Applications by Vertical Market
- Why Are Businesses Not Using SaaS?
- Why the Lack of Interest in Hosted Business Management Applications?
- Main Reason for Lack of Interest in Hosted Applications by Vertical Market
- Office Productivity Applications
- Current Office Productivity Applications Usage
- Office Productivity Application Implementations by Vertical Market
- Current Hosted Office Productivity Applications Users
- What Are the Adoption Drivers for Current Hosted Application Users?
- Important Potential Benefits of Using Hosted Productivity Applications by Vertical Market
- Satisfaction With Hosted Office Productivity Applications is Good, But Not Great
- Level of Satisfaction With Using Hosted Productivity Applications by Vertical Market
- Recommending Using Hosted Productivity Applications by Vertical Market
- Future Usage of Hosted Productivity Applications by Vertical Market
- What Would Current Users Be Willing to Pay For?
- Features Desired from Hosted Productivity Application Users by Vertical Market
- Who Do Current Users Turn to as Providers of Hosted Applications?
- Types of Providers of Hosted Productivity Applications by Vertical Market
- Future Office Productivity Application Plans by Vertical Market
- Current Installed Users Who are Going to Switch to or Try Hosted Applications
- Why Try Hosted Applications?
- Important Potential Benefits of Hosted Productivity Applications by Vertical Market
- Who Will They Turn to as Providers of Hosted Applications?
- Providers Turned to for Hosted Productivity Applications by Vertical Market
- Current Installed Users With an Interest in Hosted Applications
- Can Anything Stoke the Interest of Installed-License Users in Hosted Applications?
- Interest in Hosted Productivity Applications by Vertical Market
- What Drives Interest in Hosted Office Productivity Applications Among Curious Office Users?
- Important Potential Benefits of Hosted Productivity Applications by Vertical Market
- Steadfast Installed Users
- Why the Lack of Interest in Hosted Productivity Applications?
- Main Reason for Disinterest in Hosted Productivity Applications by Vertical Market
- Summary
- Methodology
- Vertical Definitions
- Glossary
- Related In-Stat Reports
- Appendix
- List of Tables
- Table 1. US Business Application Hosting Revenues 2007-2012
- Table 2. Private Sector Firms More Likely to Use Business Management Applications
- Table 3. Healthcare Market Among Most Satisfied With Hosted Business Management Applications
- Table 4. Scalability and Accessibility of Hosted Applications are Crucial Benefits
- Table 5. Professional Services Market Most Likely to Save With SaaS
- Table 6. Reasons for Churn Vary by Vertical Market
- Table 7. Software Companies Turned to Most Often as SaaS Provider by All Four Major Vertical Markets
- Table 8. Reasons for Disinterest in SaaS Vary Greatly by Vertical Market
- Table 9. Education Market the Least Likely to Use Hosted Productivity Applications
- Table 10. Potential Benefits of Hosted Productivity Applications Vary Across Vertical Markets
- Table 11. Government Users of Hosted Productivity Applications Less Than Satisfied
- Table 12. Hosted Productivity Application Users in Education Market Most Likely to Recommend Them
- Table 13. Healthcare Market Most Likely to Use Hosted Productivity Applications More in Next Year
- Table 14. Healthcare Market Shows Interest in Additional Features
- Table 15. Most Vertical Markets Look to Software Companies for Hosted Productivity Applications
- Table 16. Professional Services Market the Most Likely to Experiment With Hosted Productivity Aps
- Table 17. Importance of Potential Benefits of Hosted Productivity Applications Vary by Vertical Market
- Table 18. Software Companies the Most Likely Provider of Hosted Aps Across All Vertical Markets
- Table 19. Private Sector Firms Slightly More Interested in Hosted Applications Than Public Firms
- Table 20. Important Potential Benefits of Hosted Productivity Applications by Vertical Market
- Table 21. Reasons for Disinterest in Hosted Productivity Applications Vary Across Vertical Markets
- Table 22. Business Management Application Implementation Status
- Table 23. Non-SaaS User Interest in Trying Hosted Applications in Next 12 Months
- List of Figures
- Figure 1. Total US Market View of Business Management Application Implementations
- Figure 2. More Than One-Third of Professional Services Market Addressable for Hosted CRM
- Figure 3. Roughly Only One in Ten Firms Have No Plans for ERP Implementations
- Figure 4. Few New HR/Talent Management Application Implementations in the Healthcare Market
- Figure 5. Private Sector Firms the Most Likely to Implement Hosted SFA-Type Applications
- Figure 6. Only 2% of Public Sector Firms Plan New Hosted SCM-Type Application Implementations
- Figure 7. Web Collaboration Applications the Most Likely Applications to be Hosted
- Figure 8. Over 80% of Current Hosted Business Ap Users Will Use Them as Much or More in Next Year
- Figure 9. TCO Not the Only Benefit to Current or Future SaaS Users
- Figure 10. Only 4% Say There is No TCO Benefit to Hosted Business Applications
- Figure 11. Security and Poor Support Leading to Churn
- Figure 12. Software Companies Turned to Most Often as Hosted Applications Providers
- Figure 13. Little Interest in Hosted Applications Among Current Non-Hosted Applications Users
- Figure 14. Reasons for Disinterest in Hosted Applications Vary by Size of Business
- Figure 15. Traditional Licenses Solely Used by Three-Quarters of US Market
- Figure 16. Multiple Benefits Resonate With Current Hosted Productivity Applications Users
- Figure 17. Majority of Current Hosted Applications Users Only Moderately Satisfied
- Figure 18. Four Out of Five Users Would Recommend Using Hosted Productivity Applications
- Figure 19. 83% of Hosted Productivity Applications Users Plan to Use as Much or More in Next Year
- Figure 20. Providers Could Potentially Charge for Extra Features
- Figure 21. Preferred Providers of Hosted Productivity Applications Vary
- Figure 22. Not Much Demand for Hosted Applications Expected Among Current Installed License Users
- Figure 23. TCO and Accessibility are Key Potential Benefits for the Hosted-Curious
- Figure 24. Pure-Play Productivity Applications Providers Will See Market Share Gains in Next Year
- Figure 25. Not Much Interest in Using or Trying Hosted Applications Among Current Installed Users
- Figure 26. Same Benefits Resonate With Hosted-Curious Installed Productivity Users
- Figure 27. Lack of TCO Benefit the Main Reason for Disinterest among Installed License Users
- Figure 28. Respondents’ Knowledge of Organization’s Business Software
- Figure 29. Respondents’ Role in the Procurement of Organization’s Business Software
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