Disruptive SaaS Enterprise Applications

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This presentation starts with market sizing for SaaS applications, looks at various domains and segments of SaaS solutions, overviews three private companies and ends with some conclusions on the SaaS market.

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Disruptive SaaS Enterprise Applications

  1. 1. SaaS EnterpriseApplication Market Trends Chuck Jones March 29, 2012
  2. 2. Every SaaS Segment Has a CAGR Over 20% • Worldwide SaaS market could reach $53.6 billion in 2015, a CAGR of 26.4% from 2010 WW SaaS Revenue by Segment 30.0 25.0 20.0 Application development and deployment $ bil. 15.0 System Infrastructure Applications 10.0 5.0 0.0 2010 2011 2012 2013 2014 2015 2010-15$ billions 2010 2011 2012 2013 2014 2015 CAGRApplication development and deployment 1.7 2.7 4.0 6.0 8.9 12.6 48.6%System Infrastructure 4.5 5.8 7.4 9.3 11.5 14.4 26.1%Applications 10.4 13.1 15.9 18.7 22.2 26.5 20.7%Total 16.6 21.6 27.4 34.1 42.6 53.6 26.4% Source: IDC 2
  3. 3. SaaS Solutions Stealing Share from Enterprise Applications• 38% of Enterprises project that over half of their software applications will be deployed on a cloud platform within three years compared to 11% of Enterprises today• SaaS application revenue could grow from $10 billion in 2010 to $21.3 billion in 2015, a 16.3% CAGR• SaaS applications could increase from 9.6% of enterprise application purchases in 2010 to 13.8% in 2015 2010-15 $ billions 2010 2011 2012 2013 2014 2015 CAGR Cloud Applications (SaaS) $10.0 $12.1 $14.3 $16.7 $18.9 $21.3 16.3% Enterprise Application Software $103.8 $114.4 $123.7 $133.4 $144.0 $154.8 8.3% Cloud Percentage 9.6% 10.6% 11.6% 12.5% 13.1% 13.8% Source: Yankee Group and Gartner 3
  4. 4. XaaS Solutions at Various Stages of Gartner’s Hype Cycle 4
  5. 5. SaaS Adoption Could Top 50% in 2012• SaaS continues to outpace other XaaS implementations 5
  6. 6. Security Related SaaS Application Spending Projected to Grow at a 31% CAGR Through 2014 6
  7. 7. SMBs Plan to Pay for Cloud Services 7
  8. 8. SMBs Have Higher Adoption of SaaS Solutions Than Enterprises Source: Gartner 2011 8
  9. 9. SaaS Solutions Apply Across Multiple Domains 9Source: Wells Fargo Securities
  10. 10. SaaS Categories and Major Players Sales & Service Talent Management Supply Chain /B2B Taleo Kenexa Salesforce.com RightNow Technologies Oracle Cornerstone OnDemand Venda Workday MarketLive Saba SumTotal IBM Adobe Jobvite Xactly Peopleclick/Authoria Veeva Systems FPX Concur LivePerson Baynote Ariba Rearden Commerce HireVue Oracle Sonar6 SugarCRM Microsoft BigMachines DemandTec Axeda FastSpring SPS Commerce Covisint Coupa Marketing & Social ob10 Emptoris GHX Collaboration, Integration, Salesforce.com Arena Solutions SciQuest Elemica MFG.com Productivity Bazaarvoice Demandforce BravoSolution IntraLinks Responsys ConstantContact Aravo Hubwoo Informatica Google Vocus Microsoft Marketo iContact Covisint Citrix ExactTarget NetSuite Dropbox Cisco Box.net IBM Lithium Vertical Response Intuit Ultimate Software PowerReviews Workday SuccessFactors Medidata OrderMotion Plex Online RealPage FinancialForce.com ServiceNow Rootstock Convio CaseCentral OpenTable Vertical Specialists Patersons Intacct ProofPoint Apptix Management Dynamics Freshbooks Advanced Planning Cisco Symantec Athena Health Zuora Google Logmein DealerTrack Tangoe TelogisBack Office (ERP, HRIS, and AppFirstAccounting) IT and Security 10 Source: Goldman Sachs
  11. 11. The Salesperson Who Makes the Most MoneyIsn’t the Best Salesperson, They Are the Best Sales Plan Lawyer • Sales plans are developed internally with – Bias from people who create them • Finance and Sales – Limited information on other companies • Outside consultants • Xactly is able to analyze multiple companies in the same industry – Multi-tenant delivery model – Determines which metrics best motivate sales people • Can Model and Test-drive sales plans • Customers include Akamai, ARM, Cablevision, DHL, Intuitive Surgical, John Hancock, LinkedIn, Motorola, NBC Universal, PayPal, Salesforce.com, Stryker, Walgreens and Yamaha 11
  12. 12. Wherever There are People, There are People to be Motivated• 50% of organizations will Gamify Innovation Processes by 2015 (Gartner) – Gen Y makes up 25% of the workforce and growing• Integrate gaming into business activities – Points, Badges, Levels and Virtual Goods• Advantages – Encourages repeat user and visitor behavior – Fast feedback vs. once a year performance review – Helps determine and reward skilled employees 12
  13. 13. When Your Customer Participates, Your Business Wins• Microsoft “Ribbon Hero” trains users on Office – Understand breadth and depth of the entire Suite – Keep users from defecting to “good enough” alternatives such as Google Docs – Real-time feedback and scores, badges and levels• SAP Community Network (SCN) Recognition Program – Earn points for every contribution – Four levels to show depth of expertise – Leaderboards for individuals and companies – Hiring managers are using as an initial screen for candidates – Companies are adding SCN points to performance evaluations Source: Bunchball 13
  14. 14. Verify the Supply Chain• Connects Buyers, Suppliers, Testing Labs, Audit Firms and Government Agencies• icix enables a more secure and reliable Supply Chain• Verification for – Sourcing products • Multi-level down to original source – Employee Health and Safety – Product Tests – Tracking Chemicals – Insurance• Increased regulations driving demand – California Prop. 65, Consumer Product Safety Act• Protects brands, lowers costs & risks and minimizes supply change disruptions• Customers: ConAgra, Costco, Safeway, Sysco, Target, Tyson, WalMart and Whole Foods 14
  15. 15. Additional Enterprise SaaS Areas to Explore• Mobile access to Enterprise Applications – Secure containers for mobile devices• Development tools for Enterprise SaaS applications – Integrate social media platforms• Unified Communications as a Service (UCaaS) – Voice, Web and Video conferencing• Testing as a Service (TaaS) – Automated Software Quality (ASQ) and TaaS to generate almost $1 billion in revenue in 2014 with a 36% CAGR (IDC)• Vertical specific application and industry solutions – Retail, Retail POS, Finance, Consumer Products and others 15
  16. 16. Conclusions• SaaS/Cloud solutions bring scale and lower costs• SaaS solutions will be very disruptive and competitive with Enterprise on-premise applications• SaaS offerings will cover a range of solutions – Application and Industry specific • Retail, Finance, HR, Supply Chain, … – Platforms, Infrastructure and Business Process – Span SMBs to Enterprises• Multi-tenant provides for data consolidation and analysis• Marketing: Everything is Social• Mobile: Bring your own Device 16

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