The global outlook series on Application Service Providers/SaaS provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. This report discusses the prevailing trends, issues, demand forecasts, and activities that affect the industry. The report offers an aerial view of the global Software-as-a-Service Market, identifies major short to medium term market challenges, and growth drivers. The report also offers a recapitulation of recent industry activity in addition to an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 182 companies active in the market.  
 

TABLE OF CONTENTS 

APPLICATION SERVICE PROVIDERS\SOFTWARE-AS-A-SERVICE (SAAS)	GOS-114
A GLOBAL OUTLOOK, OCTOBER 2009


                                       CONTENTS



  1. Industry Overview 							1
      Down the Time Lane                                                1
      Evolution of SaaS Model                                           1
      Software-as-a-Service (SaaS): A Quick Primer                      2
      Traditional Enterprise Software Model Vs. ASP/SaaS Model          3
      Why Software-as-a-Service (SaaS)?                                 3
      Application Suites Vs. Best-of-Breed Products                     4
       Best-of-Breed Products and Services                              4
      Applications Growing Abound for SaaS                              5
      Numbers Speak                                                     5
       Table 1: World Recent Past, Current & Future Analysis for
       SaaS Applications Analyzed with Annual Sales Figures in US$
       Million for Years 2006 through 2012                              6
      Enterprise Software Applications - A Prelude                      6
       SaaS-based Enterprise Applications By Select Category - Front
        Office, Back Office, Desktop, and Collaboration                 7
       Leading SaaS Enterprise Application Software Vendors/
        Providers by Application Segment                                7
       On Demand Spend Lock Horns with On Premise Spend                 8
        Table 2: Worldwide Annual Sales of Enterprise SaaS: Market
        Estimates and Forecasts in US$ Million for Years 2006
        through 2012                                                    8

        Table 3: World Enterprise Software Application Spending
        (2008 & 2012): Percentage Share Breakdown by Category - On
        Premise and On Demand                                           9
       Leading SaaS Applications                                        9
        Table 4: Worldwide Annual Sales of SaaS-Based Enterprise
        Application Software by Application - Content Management,
        Collaboration and Communication; ERP; SCM; CRM; Digital
        Content Creation and Office Suites; and Others: Estimates
        and Forecasts in US$ Million for Years 2006 through 2012        9
       Customer Relationship Management - A Key Application Area for
        SAAS                                                            10
        Table 5: Worldwide Market for Saas in Customer Relationship
        Management (CRM): Estimates and Forecasts in US$ Million for
        Years 2006 through 2012                                         10

        Table 6: Worldwide Spending in Customer Relationship
        Management Market (2007 & 2012): Percentage Breakdown by
        Category - On-Premise and On-Demand                             10

  2. End-Use Industry - An Overview 10
      Industry/Vertical Specific Applications Gaining Traction          10
       SaaS for Insurance Sector Still in Nascent Stage                 11
       Other Potential                                                  11

  3. Trends & Issues 11
      Economic Recession: A Boon for SaaS Providers                     11
      Internet Backs 'On Demand' Success                                11
      On Demand Software Finds Edge                                     12
      Ad-Supported Revenue - A Key Driver for On Demand Software        12
      Year 2008 Witnesses A Flurry of New Product Introductions         12
      SaaS: Conquering Unexplored Domains                               12
      Moving Beyond SMBs                                                13
      Software Vendors and IT Solution Providers Adopting
       Subscription-Based Business Model                                13
      Challenges to Reckon With                                         13
       Limited Flexibility                                              13
       Security and Privacy: A Matter of Concern                        14
       Other Pitfalls of the SaaS Approach                              14
       Ad Hoc Support Services: A Growing Trend                         15

  4. Market Dynamics 15
      SaaS Gathers Steam                                                15
      Limited Client Base - No Longer a Major Deterrent                 15
      Where Do VARs Stand in SaaS Space?                                16

  5. Competitive Landscape 16
      Competitive Overview                                              16
       Table 7: World Market for On Demand Software (2005 & 2006):
       Percentage Market Share Breakdown for Leading Vendors -
       Salesforce.com, Cisco WebEx, Digital Insight, Citrix Online,
       Microsoft, Omniture, MessageLabs, Concur Technologies,
       Kenexa, IntraLinks and Others                                    17
       Leading Vendors and Market Presence                              18
      Pure Play Vendors' Pure Domination                                18
      Large Vendors Turn Market Followers                               19
      Latecomers, But Potential Challengers                             19
       Leading On Demand Software Vendors and Vendor Offerings by
        Software Segment                                                20

  6. Application Service Provider - An Insight 21
      Need for Application Service Providers                            21
      Classification of ASPs by Area of Focus                           21
       Specialist/Functional ASPs                                       21
       Regional/Local ASPs                                              21
       Enterprise ASPs                                                  21
       Volume Business ASPs                                             21
       Vertical Market ASPs                                             21
      Classification of ASPs by Applications and Services Provided      21
       Applications                                                     22
        Vertical Applications                                           22
        Analytical Applications                                         22
        Personal Applications                                           22
        CRM Applications                                                22
        ERM Applications                                                22
        Collaborative Applications                                      22
       Services                                                         22
        Core Services                                                   22
        Managed Services                                                22
        Extended Services                                               22
      An ASP Model                                                      22
      Components of ASP                                                 23

  7. SAAS - A Regional Perspective 23
      The United States                                                 23
       US Leads World SaaS Market                                       23
       Differentiation - the Buzz Word                                  23
      Asia-Pacific                                                      23
       SaaS Market in Perspective                                       23
        Table 8: SaaS Market in Asia-Pacific (2006): Percentage
        Breakdown of Dollar Sales By Region - Australia, China,
        Korea, India, Singapore and Others                              24
      Growth Drivers and Inhibitors in a Nut Shell                      24
      Going Beyond CRM                                                  24
      Competitive Landscape                                             25
      Analysis By Region                                                25
       China                                                            25
        SaaS Market - Growth on Cards                                   25
        ERP - The Leading ASP Application                               25
       India                                                            25
        SaaS Market Looks Bright and Cheerful                           25
         Table 9: Indian IT Services Market (2006 & 2010):
         Percentage Breakdown of IT Services Budgets by Category -
         SOA Budgets, SaaS Budgets and Others                           26
       Purchases through Vendor's Representative: An Established
        Software Delivery Mode                                          26

  8. Strategic Corporate Developments                                   27

  9. Product Introductions/Launches                                     49


 GLOBAL DIRECTORY