Here’s Gartners Predictions about SaaS

I’m a little reticent to put up this kind of research given my previous post about how research houses themselves were being disrupted. But here are the top predictions from Gartner .


  1. By 2010, 15% of large companies will have started projects to replace their ERP backbone (financials, human capital management and procurement) with new service-oriented architecture [SOA] and SaaS-based solutions).
  2. By 2012, business process management suites (BPMSs) will be embedded in at least 40% of all new SaaS offerings, as providers strive to make business processes explicit and mass-customizable by their customers.
  3. By 2012, more than 66% of independent software vendors (ISVs) will offer some of their applications optionally or exclusively as SaaS.
  4. By 2010, 85% of SaaS vendors will offer uptime service levels of 99.5% or beyond in standard contracts, as well as performance SLAs.
  5. By 2009, 100% of Tier 1 consulting firms will have a SaaS practice.

Reading these I actually don’t have too much to argue with. In fact they seem to cover topics i’ve posted on previously.

I absolutely agree that if SaaS is going to mainstream (point 1) then service level agreements will be a requirement. Quite how this fits with an Internet delivered service could be quite a conundrum for many ISV’S. I personally think it opens up some massive opportunity for Telco’s. Phil Wainwright speculates that 2008 could be the yr that Telco’s crack SaaS but because of their ability to deliver utility computing. I think that utility computing coupled with an ability to deliver end to end SLA’s .

The prediction about BPMS i don’t quite get. Coupled with consulting yes but it would seem to me that getting to ‘mass customisation’ kinds defeats the purpose (and value) of SaaS.  See my post about customising the code or change the business for more on this.

The number’s of ISV’s in the SaaS game is an interesting prediction. That is a huge amount of change in yrs – cultural, skill and channel. I would suggest that those companies with SaaS development and deployment (like Force, Microsoft and apprenda) platforms are in for a helluva few years too.