IBM’s acquisition of Arsenal Digital Solutions is the latest transaction driven by the growing concern among businesses of all sizes that they have to do more to protect their electronic files in order to safeguard against natural disasters and satisfy escalating regulations.

What makes this trend even more interesting is that it has brought greater attention to the fundamental advantages of using a “hosted”, managed service to respond to these business concerns. This has made a widening array of storage, e-discovery and other managed service providers (MSPs) very attractive acquisition targets for an expanding assortment of potential buyers.

Here are a few of the acquisitions which preceeded IBM’s announcement,

Seagate $185 million purchase of EVault
EMC’s $76 million acquisition of Berkeley Data Systems Inc.’s Mozy storage service
Autonomy’s $375 million acquisition of email archiving service provider Zantaz Inc.
A series of acquisitions by Iron Mountain, including … Read More »

Last week’s second annual SIIA On-Demand Conference was a bellwether for the state of the Software-as-a-Service (SaaS) industry. Rather than being composed of the usual suspects of SaaS speakers—Salesforce.com, Microsoft, etc.—the event included an interesting mix of prominent players and start-ups who clearly demonstrated that we are well beyond the ‘why SaaS’ stage and deeply into the ‘how’ phase of this important movement.

The event opened with a packed house of over 300 attendees, many with senior executive titles, and a relatively new name to the SaaS market presenting. Donald Proctor, the Senior Vice President of Cisco Systems’ Collaboration Software Group kicked off the event promoting its vision of the next wave of inter-office SaaS solutions based on WebEx’s collaboration platform which Cisco acquired in March 2007.

Although I might suggest that this wave of inter-office SaaS solutions is well underway and … Read More »

Waiting for a delayed flight to Chicago from Vegas, as I try to make my way home to Boston, is an opportune time to recap a week of travels across the Software-as-a-Service (SaaS) and managed services landscape.

This past week began at Salesforce.com’s annual Dreamforce user conference. It was another lovefest that attracted a record crowd of over 7000 users, partners, press and analysts, up from fewer than 5000 a year ago. The 40% growth in total attendees was eclipsed by a tripling in the number of partners showcasing their on-demand capabilities, despite a big increase in the price for booth space.

The focal point of the event was Salesforce.com’s introduction of its new Platform-as-a-Service (PaaS), called force.com. The company also introduced a user interface on-demand solution (IaaS), visualforce.com. (Click here, to read THINKstrategies’ whitepaper regarding the new PaaS.)

These announcements are the … Read More »

Last week, NetSuite announced that it was finally ready to enter the public market with an Initial Public Offering (IPO), and this week two other Software-as-a-Service (SaaS) oriented players found a private exit via acquisitions.

The NetSuite acquisition had been highly anticipated and is another indication of the growing support of the SaaS model within the investment community. NetSuite’s S-1 shows that the company is experiencing strong growth while also reducing the proportion of its revenues being spent on software development, sales and marketing. Although NetSuite isn’t a rocket-ship like Salesforce.com, it has established a broad enough customer base and is gaining sufficient momentum to disprove any lingering misconceptions that SaaS can’t satisfy businesses’ back-office or financial management needs.

A successful IPO by NetSuite, combined with growing receptivity to IPOs in general within the investment community, will widen the door for other … Read More »

Last week, I had the opportunity to return to Dublin, Ireland, to participate in the second Software-as-a-Service (SaaS) Summit which I’ve helped Enterprise Ireland (EI), the country’s economic development agency, organize and moderate in the past nine months.

After a very successful launch of this symposium series in October with the first SaaS Summit, decided to host another round. The goal of our first session in the Fall was to educate Irish companies and entrepreneurs about the opportunities in the SaaS market. Our objective last week was to make them aware of the major challenges and offer steps to success, especially for those local companies seeking to penetrate the U.S. market.

In addition to identifying and recruiting each of the Summit speakers, I also had the privilege of kicking off the day with a keynote presentation summarizing the state of the SaaS … Read More »

In its continuing effort to outpace its competition, Salesforce.com unveiled a new “SOA as a service” strategy today.

This is the company’s latest attempt to extend its footprint across the software landscape and increase its relevance to a wider population of users, developers and partners. This move also offers another clue for how established independent (read: incumbent) software vendors (ISVs) can better position themselves in the rapidly evolving Software-as-a-Service (SaaS) market.

(By coincidence, IBM kicked off its IMPACT 2007 user conference today by spotlighting its software and services aimed at the $160 billion SOA opportunity.)

Service-oriented architecture (SOA) has become a popular software development framework aimed at making applications more responsive to business requirements. Although the hype regarding the benefits and market acceptance of SOA far exceeds the reality, there is little debate that the proper implementation of SOA can generate meaningful returns … Read More »

Microsoft today unveiled a new SaaS Incubation Center Program to help independent software vendors (ISVs) adopt the Software as a Service (SaaS) delivery model. Microsoft’s new program will provide ISVs with business and technical consulting services, a hosting channel to market, and incentive discounts to Microsoft’s enabling technology.

Not long ago, the incubator idea seemed to be a distant memory associated with the demise of the dot.com era. But, with the advent of a new surge of Web 2.0 opportunities, the incubator concept has also been reborn.

Microsoft isn’t the first to launch an incubation program in the SaaS space. OpSource, Salesforce.com, and others have created their own programs. What sets Microsoft’s program apart from the others is how it is attempting to link ISVs with hosting companies as a channel to market.

For the ISVs, this will give them a wider assortment … Read More »