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:
- Adobe Creative Cloud
- QuickBooks Online
- Google Apps
- Google Analytics
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.