I’ve been suggesting for years that the IT system management (ITSM) market is ripe for a new generation of Software-as-a-Service (SaaS) solutions, and a widening array of emerging players are finally fulfilling my vision.

Up until recently, IT departments have been plagued by the same frustrations which permeated most large-scale enterprises contending with overly complex, cumbersome and costly business applications.

In the case of the business units, it was trying to implement and maintain enterprise applications, such as CRM or ERP, which drove them crazy and in the direction of SaaS alternatives from companies like Salesforce.com and NetSuite.

Now, IT organizations are starting to migrate away from the ITSM platforms offered by IBM, HP, BMC and CA in favor of SaaS-based alternatives from Service.now and others.

Why are IT departments moving in this direction? For the same reasons as their business unit counterparts,

Frustration with the costs and complexities of traditional, … Read More »

One of the key battlefields in the cloud computing market for 2010 which I identified earlier this year is IT service management (ITSM). Last month, I discussed BMC’s latest foray into the SaaS-based ITSM world, as well as Service-now.com’s recent win at PepsiAmericas.

Last week, Service-now.com issued a press release summarizing its 2009 accomplishments. The company reported that its recurring revenue increased approximately 136 percent in 2009. Cynics might discount the significance of this growth rate by suggesting it’s easy to report a substantial jump when you’re starting at a low base. However, the company’s CEO, Fred Luddy, revealed to me during a private lunch preceding a company marketing event in Boston that Service-now.com is generating signficant, albeit confidential, revenues and is on a run-rate to double its revenues again in 2010.

The company’s success in the enterprise was personified by the room full … Read More »

Back to back announcements this week have brought renewed attention to the IT service management (ITSM) market as a key battleground for Software-as-a-Service (SaaS) competition.

On January 19, BMC announced its latest Remedy ITSM Suite On Demand solution, a SaaS-based offering which promises to integrate with BMC’s Atrium Configuration Management Database (CMDB) and Business Service Management (BSM) platform.

That same day, Service-now.com announced that PepsiAmericas had selected its SaaS-based ITSM solution. In Service-now.com’s announcement, PepsiAmericas’ IT Customer Service Manager, Amy Irwin said, “Our old tool couldn’t meet our needs so we went shopping for a tool that could. We quickly determined SaaS would best fit our tool requirements.”

IT acceptance of SaaS-based solutions isn’t new. THINKstrategies first identified this trend in our 2007 customer survey in conjunction with Cutter Consortium.

However, SaaS vendor focus on this segment of the market has intensified over the past two … Read More »