Posts Tagged ‘CRM’
Worldwide Software as a Service Revenue is Forecast to Grow 21 percent in 2011
Posted on: November 12, 2011
- Worldwide software as a service (SaaS) revenue is forecast to reach $12.1 billion in 2011, a 20.7 percent increase from 2010 revenue of $10 billion, according to Gartner, Inc. The SaaS-based delivery will experience healthy growth through 2015, when worldwide revenue is projected to reach $21.3 billion.
- Gartner defines SaaS as software that is owned, delivered and managed remotely by one or more providers. The provider delivers an application based on a single set of common code and data definitions, which is consumed in a one-to-many model by all contracted customers anytime on a pay-for-use basis, or as a subscription based on use metrics.
- After more than a decade of use, adoption of SaaS continues to grow and evolve within the enterprise application markets,” said Tom Eid, research vice president at Gartner. “This is occurring as tighter capital budgets demand leaner alternatives, popularity and familiarity with the model increases, and interest in platform as a service (PaaS) and cloud computing grows.”
- Initial concerns about security, response time and service availability have diminished for many organizations as SaaS business and computing models have matured and adoption has become more widespread,” Mr. Eid said. “Usage and vendors’ on-demand ecosystems continue to evolve to provide additional business and technology services, more vertical-specific functionality, and stronger communities of partners and buyers.”
- During the past two years, the significant industry buzz surrounding SaaS and other off-premises models has shifted to cloud computing. Cloud computing is a broad concept, of which SaaS is only one variation, representing the application layer of the overall cloud architectural stack. However, SaaS has been a lead indicator of the cloud concept for some time. Gartner estimates that 75 percent of current SaaS delivery, as measured by revenue, could be regarded as cloud services, and this could exceed 90 percent by 2015 as the SaaS model matures and converges with cloud service models.
- Customer relationship management (CRM) continues to be the largest market for SaaS. SaaS revenue within the CRM market is forecast to reach $3.8 billion in 2011, up from $3.2 billion in 2010. Gartner expects SaaS to represent nearly 32 percent of the CRM market’s total software revenue in 2011.
- The market landscape for on-demand CRM continues to evolve and mature as the availability and use of SaaS solutions become more pervasive,” Mr. Eid said. Greater market competition and increased focus on megavendors reinforce the legitimacy of on-demand solutions, mitigating initial objections about security and availability for many, as acceptance of SaaS as a viable model for enterprise computing services grows.”
- SaaS revenue within the content, communications and collaboration (CCC) market is on pace to surpass $3.3 billion in 2011, up from $2.8 billion in 2010. The CCC market continues to show the widest disparity of SaaS revenue generation, with SaaS representing just 5 percent of enterprise content management (ECM) in 2010 but approximately 83 percent of Web conferencing.
- The proportion of enterprise resource planning (ERP) revenue attributed to SaaS overall is still in the single digits, at approximately 7 percent of the overall ERP market. ERP SaaS offerings contributed approximately $1.5 billion to the SaaS market in 2010, and by year-end 2011, Gartner expects this to increase to $1.7 billion. The penetration of SaaS within ERP varies greatly between subsegments, with human capital management (HCM) being the most penetrated (in terms of adoptions and revenue growth) and enterprise asset management (EAM) and manufacturing being relatively unaffected by SaaS.
- NEC India Pvt Ltd announced an alliance with Trimax IT Infrastructure & Services Limited (Trimax), an IT services and solutions provider, to explore opportunities in delivering “SaaS” services using an integrated application aggregation platform.
- As a part of this association, NEC will be leveraging Trimax’s data center capabilities to provide business applications such as CRM, ERP, Human Resource Management, Inventory, Security etc to the enterprise customers.
- This partnership will leverage NEC’s technological expertise and Trimax’s local market reach to offer SaaS applications to SMBs in India via an opex model, thus reducing their IT expenditure and total cost of ownership (TCO).
- Mr. Ken Sugata, General Manager at Global Carrier Cloud division, NEC Corporation commented, “Cloud computing has pavedan innovative way for enterprises to meet the ever changing business needs to deal with complex business environments.
- Tokyo-based company modernising its CRM in staggered but rapid implementation as part of its change management project
- Information and communications technology company Fujitsu has chosen Salesforce.com to unify key cloud-based infrastructure of the Tokyo-based company.
- Fujitsu selected the enterprise cloud computing company to link sales, marketing and business assurance operations as part of a change management project. Fujitsu hopes that the implementation of Salesforce.com’s Sales Cloud and Chatter will establish a central platform between the three key customer-facing departments to provide a unified and open approach to deal with customers and prospects.
- Fujitsu is modernising its Customer Relationship Management (CRM) by rolling out the Sales Cloud for 1,200 employees in a staggered but rapid implementation, as a part of this change management project, said the company.
- The company added that it opted for the unification of departments with Salesforce.com’s support to overcome the requirement of major overhaul and the choice for the next stage of development. The decision to move to a cloud computing offering from Salesforce.com helps Fujitsu to deliver end-to-end visibility across the business, to improve customer service, increase productivity and reduce overall IT costs, said the company
- Net4, a network and application service provider in India with consolidated revenues of Rs 304 crore, is all set to introduce white-label services for its software-as-a-service (SaaS) offerings.
- The company added cloud computing to its portfolio in September 2010, and already has more than 700 customers for its software-as-a-service and platform-as-a-service offerings.
- The company currently offers a range of Microsoft applications such as Exchange, SharePoint, CRM (Dynamics) under its SaaS offerings and also supports platforms, databases and applications under its PaaS offerings. These services are provisioned from Net4’s state of the art ISO 270001(Information Security) multi redundant data centre infrastructure. The new services would be launched in December 2011. We are currently working on SMB applications such as low end CRM, accounting apps or mini ERP, HR, Payroll etc.
- These services would be branded under Net4’s direct or sub brands,” said Jasjit Sawhney, CMD, Net4India. On how the services would be priced, Sawhney said, “We offer Microsoft Exchange on the cloud at Rs 3,500 per user per year. Our own UC applications are offered for Rs 800 per person per year.” The company would work with its 100 odd tier-2 channel partners to resell the services.
Tags: Cloud computing, cloud services, CRM, India, net4india, news, sharepoint, technology, white labeling
- Salesforce.com, an enterprise cloud computing company, has acquired Assistly, an instant customer-service help desk built for the cloud, for approximately $50m in cash. As part of the transaction, Salesforce.com also assumed Assistly’s unvested options and will issue restricted stock units to certain Assistly shareholders.
- Salesforce.com said the acquisition of Assistly will help them in democratising enterprise applications in the cloud by putting them at the heart of the new trend of customer service help desk applications. Assistly allows small companies and emerging businesses set up and deliver social customer-service in less time, and enable companies to manage service cases and engage with customers in real time over a range of channels – including Facebook, Twitter, Web chats, e-mail and phone – all from one, easy-to-use interface.
- Salesforce.com executive vice president of applications Alex Dayon said they are excited that with Assistly’s innovative technology and business model, the Service Cloud will now enable even the smallest companies to become a social enterprise. Assistly CEO Alex Bard said as part of Salesforce.com and the Service Cloud family, Assistly can continue to deliver and improve one of the world’s most-innovative customer-service applications.
- With this acquisition, Salesforce.com will now extend their support to many small and emerging businesses that have been waiting for a customer-service help desk application with instant sign up, zero-touch onboarding, and capabilities and pricing scaled to their needs.
Tags: Assistly, cloud services, CRM, help desk, news, SaaS, Salesforce.com, Software as a Service, technology
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