Back-Office Cloud Solutions Soar
A series of announcements over the past week clearly indicates that Software-as-a-Service (SaaS) financial management and enterprise resource management (ERP) solutions are taking hold among organizations of all sizes worldwide.
The first was Intacct’s announcement that it had grown its customer subscription base 68% in 2010 and added more than 800 new client organizations. The company also reported 94.2% of clients surveyed indicated they would recommend Intacct to their colleagues, which is a perfect example of the customer-driven referral engine which is powering the overall growth of SaaS solutions. Intacct also said that 11 of the top 100 largest CPA firms in North America have joined the Intacct Accountants Program from CPA2Biz, showing that mainstream professional service firms are also adopting SaaS and recommending their clients take advantage of these solutions as well.
Plex Systems, a provider of SaaS-based manufacturing ERP software, announced today its overall revenues grew 27% and its recurring revenue increased 26%. The company added 37 new customers in 2010. This may not seem like a lot, but Plex’s customers represent a cross-section of the most traditional of manufacturing companies who many would think are not likely candidates for SaaS or other Cloud-oriented solutions, but are increasingly interested in alternatives to legacy applications. Plex Systems also won its largest account in 2010, Invensys Controls, a London-based, technology company focused on industrial automation, rail transportation and controls. This illustrates the global growth of the SaaS market.
Today was capped off with NetSuite’s yearend results announcement which included 16% revenue growth overall and 18% in recurring revenues in 2010, and 21% year-to-year growth in the fourth quarter. It is also boasting a growing partner network and gaining momentum through its third-party channels.
These yearend results clearly show that CFOs and CEOs are increasingly adopting SaaS to run their back-office operations.
SAP’s renewed efforts to compete in the SaaS market with its latest version of BusinessByDesign will accelerate market growth because it will give it greater credibility and visibility. Oracle’s heightened emphasis on Cloud-based solutions will also lend further validation to SaaS-based, back-office solutions.