The Silent Rise of SaaS


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.

Enhanced by Zemanta