IDG News Service - Given all the hype about the software-as-a-service model, you'd think that it could be applied to every category of software. Not so, says a new report from Forrester Research Inc.
In fact, SaaS will be "a disruptive force" in software categories that account for about a quarter of global software spending but will have "little or no effect" on many of 123 market segments studied, Forrester analysts Liz Herbert and Andrew Bartels wrote.
Forrester said that SaaS faces major obstacles in four broad software sectors:
Software for internal IT management and data management.
Entrenched process applications.
Vertical applications, such as securities transaction processing systems.
Such systems account for 40% of all software spending, and Forrester's report said they are likely to stay mostly in-house for "pretty obvious" reasons: security concerns, existing infrastructure investments, and the need to tightly integrate with other applications.
But SaaS is making inroads in mature application areas such as supply chain management, particularly among users who haven't already purchased the same functionality in an on-premises product, according to the report.
Meanwhile, SaaS is starting to shake things up in areas like customer relationship management and human resources, where hosted offerings are replacing on-premises systems. SaaS is also moving into application development and the niche of governance, risk and compliance software, the analysts said.
The Forrester report said that SaaS is now the dominant model for software sales and delivery in areas such as e-purchasing, expense reporting tools, blogging and wikis.
Still, categories where SaaS has taken hold of at least 50% of revenue amount to only 3% of the total software market, Forrester said.
This version of this story was originally published in Computerworld's print edition. It was adapted from an article that appeared earlier on Computerworld.com.
- Cloud Computing eGuide In this eGuide, CIO, Computerworld, and InfoWorld offer advice, tips, news, and predictions regarding cloud implementations in the coming year and beyond. Read...
- Increase IT Performance from the Enterprise to the Cloud with WAN Optimization Massive consolidation and data mobility, enabled by virtualization, have radically altered how we build servers, design applications, and deploy storage for the emerging...
- IDC: Eliminate Shortcomings in Your Cloud Architecture with Smarter Storage This white paper demonstrates how IBM Smarter Storage provides customers with an ideal, proven platform for cloud computing. IBM has a differentiated storage...
- Radicati: Cloud Business Email - Market Quadrant 2013 Google was named the top cloud business email provider in a recent report by research firm Radicati. Out of 14 key players, Google...
- Cloud Knowledge Vault Learn how your organization can benefit from the scalability, flexibility, and performance that the cloud offers through the short videos and other resources...
- Video surveillance for IT: maximum image quality, minimum bandwidth Join us on Thursday, May 8th at 1 p.m. EST when Willem Ryan, Senior Product Marketing Manager at Avigilon, will discuss how IT... All Cloud Computing White Papers | Webcasts