Since 2009 is coming to a close, I thought it would be a good time to review how I did with my predictions for the year regarding the Software-as-a-Service (SaaS) and cloud computing market.

1. On-Demand Services Move From Why To How

According to a Sandhill.com/McKinsey survey of over 850 enterprise customers at the end of 2008, 74% were already favorably disposed to adopting SaaS platforms. As a result, Gartner estimates the SaaS market will have reached approximately $8 billion at the end of 2009, a 21.9% rise from $6.6 billion in 2008. Looks like folks have moved past “why” SaaS to “how” to get the most out of their SaaS deployments.

2. New Hybrid Models

The idea of hybrid SaaS and cloud computing models has been abhorred by industry purists, but the reality is that nearly every business will rely on a combination of on-premise and on-demand resources. In 2009, the concept of “location independence” became bi-directional. … Read More »

When I published my previous post questioning whether recent executive departures at salesforce.com were an indication of a slowdown in the company’s business, I debated whether to also leave the door open to the possibility that some of these individuals might be jumping to other job opportunities.

Sure enough, salesforce.com’s former president and chief strategy officer, Steve Cakebread, has resurfaced already at Xactly Corporation where it was announced this morning he will serve as the company’s new CFO, a role he also held at salesforce.com.

This hire gives Xactly even greater market validation and credibility after its recent acquisition of Centive.

The announcement also suggests my suspicions about potential problems at salesforce.com may have been premature. The company’s latest financial results are scheduled to be announced on February 25.

Meanwhile, NetSuite announced its financial results for 2008 yesterday. The company had a record year with revenues up 40.5% overall, reaching $152.5 million. Even its fourth … Read More »

Xactly’s announcement today that it is acquiring Centive is another indication of the Software-as-a-Service (SaaS) industry shakeout and consolidation I predicted would occur in 2009.

Xactly and Centive have been fierce competitors in the sales performance management (SPM) market with both offering pure SaaS alternatives to traditional on-premise software applications.

While both companies were growing as a result of accelerating customer interest and adoption of SaaS, they also found themselves competing more with each other than the established players. Rather than continue to fight one another, they decided to combine forces to better position themselves and capitalize on growing customer demand.

This decision was especially timely given the challenges of today’s economic climate and intensifying competition.

While both companies offer solid solutions with compelling value-propositions, combining their technical capabilities and eliminating the costs of continued head-to-head competition can strengthen Xactly’s position as ‘legacy’ software players escalate their own SaaS efforts.

You can expect … Read More »

Happy New Year!

Let me be the first to offer predictions for the on-demand services market on this first day of 2009. These predictions are based on THINKstrategies’ latest survey research and ongoing consulting work with IT/business decision-makers, IT solution providers and various technology investors.

I recognize that plenty of predictions have been made already, but hope mine offer a different perspective on the future direction of the on-demand services market.

Contact me if you’d like to discuss or debate any of these predictions.

On-Demand Services Move From Why … Read More »