The Silent Rise of SaaS

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It's some 15 years since we started dreaming about delivering software not as a packaged good, but as a service delivered over web on a subscription basis. Even though Software as a Service (SaaS) has clear advantages over packaged software, Microsoft continues selling millions of copies of Office and majority of revenue  of Oracle, IBM, and SAP still comes from on-site installations. But the change is on the horizon! Even though SaaS was unable (yet) to compete head-on with traditional software vendors for big enterprise accounts, it has made major strides nevertheless, especially with fringe services and start-ups. At Zemanta we're heavy users of software as a service. But only when I've listed all the services that we use I fully grasped the pentration of SaaS at Zemanta. The services that we use at Zemanta are:

That's 17 services for which we pay $10.000 per year!

Somehow the services have made a dent into companies such as Zemanta, alleviating fears of off-site hosted solutions. While it might take another ten years for SaaS to become dominant way of delivering software,  the trend is clear - the on-site installation of software is going the way of private electric generators and telephony exchanges.

Thanks to Škrat for helping me analyze the data about our SaaS providers.

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