The Future of Software Delivery: The opportunities and challenges of emerging software delivery models

Technology

Publication Date	February 2009
Publisher	Business Insights
Product Type	Report
Pages	132
ISBN Number	not applicable
Product Code	RBI00294

Buy this product or for assistance call +44 20 7060 7474

PDF £1,730.00$2878 | €1936

FAX Order above formats by FAX

Summary

The Future of Software Delivery

The opportunities and challenges of emerging software delivery models

Report Overview

The way companies perceive and purchase their software is starting to change. Organizations no longer have to buy an on-premise application and host it on site, they can have it delivered on-demand, as a service or hosted by the software provider or a third party. But while these new models offer more choice in how they pay, receive and use applications, the proliferation of terms has led to some confusion amongst organizations about what they are and what they constitute. 'The Future of Software Delivery: The opportunities and challenges of emerging software delivery models' is a new report published by Business Insights that examines the market conditions that led to the emergence of these new models and the benefits they offer over traditional delivery types. This report also examines future market opportunities for software delivery models and how they may be extended to hardware platforms in the future.

Key Findings

The size of the on-demand CRM market will increase rapidly through 2009 to reach 27% of total market size as the CAGR for on-demand far exceeds that for the total CRM market.

There are signs that enterprises with revenue of more than $1bn are also adopting more SaaS (Software as a Service) applications. Originally some industry commentators predicted SaaS would not expand beyond SMBs into larger organizations.

A study by Triple Tree and the Software and Information Industry Association (SIIA) found that on-demand deployments were 50% to 90% faster, with a total cost of ownership five to ten times less than installed software.

The growth rates for on-demand CRM and ERP application markets are significantly higher than for the premise-based market. This is an indicator of the high levels of growth potential in the market.

Use this report to...

Identify and target future growth areas of on-demand CRM using this report's analysis of new market opportunities by sizeband, vertical and region, as well as market forecasts for key sectors.
Understand the key issues in the software delivery market including vendor ecosystem, competitor offering and on-demand vs on-premise deployments.
Enhance your sales and marketing strategies with this report's comparison of different vendor strategies and recommendations on improving your go-to-market strategy. Assess emerging software delivery models with this report's cost analysis of implementing software via different models.

Explore issues including...

On-demand is often used interchangeably with SaaS, but it's also a bigger concept in its own right, referring to a new way for organizations to respond faster to customer demand, build new partnerships or react to market changes.

Vendor ecosystem. At the moment there is no single vendor leading the market for SaaS delivered solutions. Jostling for dominance in this market are traditional applications vendors, infrastructure vendors, pure play SaaS vendors and services providers.

SaaS in the enterprise. SaaS looks set to continue pervading the enterprise, whether through those application areas that suit Internet-based delivery, such as web conferencing and collaboration tools, to those that were previously considered as necessary to be kept behind the firewall: helpdesk, back-up software, word processing, spreadsheets, slideshows, content management and even supply chain management software.

Discover

What's the difference between SaaS and traditional on-site implementations?
Will any of these alternative software models become the primary way that organisations buy software?
How is today's hosting model different to the ill-fated ASP model of the 1990s?
Where does hosting fit in and how does it differ?
What are the limitations of these software delivery models?
Who are the leading vendors in this space? And is there a market leader yet?

Content

The Future of Software Delivery
Executive summary
New software delivery models
The changing IT landscape
Future opportunities
Managed application hosting
Pitfalls of new software delivery models
Vendor activity
Chapter 1 Introduction
- What is this report about?
- Who is this report for?
- Definitions
- Application service provider
- Hosted applications
- Managed application hosting
- On-demand
- On-demand subscription fees
- On-premise applications
- Service-oriented architecture (SOA)
- Software as a service (SaaS)
Chapter 2 New software delivery models
- Summary
- Introduction
- Software as a Service
- Characteristics of SaaS
- Ownership
- Location
- Payment
- Tenancy
- Growth in the SaaS market
- The market opportunity
- On-demand
- Growth opportunities for on-demand
- Application hosting
- The ASP legacy
- Outsourcing
- Cloud computing
- Web 2.0
- Concluding thoughts
Chapter 3 The changing IT landscape
- Summary
- Introduction
- How did IT come to be delivered as a service?
- The next big thing
- Disadvantages of the on-premise model
- Cost
- Implementation
- Support and maintenance
- The benefits of new software delivery models
- Lower IT costs
- More manageable costs
- Familiar pricing model
- Faster and easier implementation
- Less software needed
- Easier upgrades
- Faster time to value
- Greater access to new applications
- Stronger ties between IT and business goals
- Easier to manage
- Scalability
- Disaster recovery readiness
Chapter 4 Future opportunities
- Summary
- Introduction
- CRM: the starting point for SaaS and on-demand
- CRM market opportunity
- Other application areas being delivered as a service
- The ERP market opportunity
- Business intelligence (BI)
- Email
- Others
- Hardware as a service
- Vertical opportunities
- Financial services
- The on-demand CRM market
- Vendor spotlight
- The benefits of SaaS for manufacturers
- SaaS delivered technology can support a range of business processes
- Go-to-market recommendations
- Public sector
- The on-demand CRM market
- Higher education
- Benefits of SaaS for institutions
- Higher education processes suitable for SaaS delivery
- SaaS in operation
- Go-to-market recommendations
- Communications
- The on-demand CRM market
- Utilities
- The on-demand CRM market
- Regional opportunities for on-demand CRM
- North America
- Europe, Middle East and Africa
- Asia Pacific
- Central and Latin America
Chapter 5 Managed application hosting
- Summary
- Introduction
- Trends influencing the hosted application market
- More applications to be delivered through managed hosting
- Managed hosting is growing vertically and horizontally too
- Services as competitive differentiation for managed application hosting providers
- Growing costs could limit managed hosting providers
- Expect virtualization to help alleviate rising data center costs
- Being more efficient could boost green credentials too
Chapter 6 The pitfalls of new software delivery models
- Summary
- Introduction
- Customer concerns about new delivery models
- Security
- Infrastructure
- Service levels
- Regulatory concerns
- Lack of customization
- Culture
- Challenge out-dated perceptions
- Be patient
- Challenges for software providers
- Architecture
- Service levels
- Customization
- Cost
- Customer support
- Security
- Overcoming barriers to adoption
- Educating the market
- More applications needed
- Stay flexible
- Promote on-demand and SOA as related concepts
- Conclusions
Chapter 7 Vendor activity and effective strategies
- Summary
- Introduction
- Competitive landscape
- There are no clear leaders in the SaaS market
- Different vendors carry multiple SaaS product lines
- Vendor offerings
- Software providers
- New-breed on-demand vendors
- Traditional enterprise application vendors
- Infrastructure providers
- Amazon
- IBM
- EMC
- HP
- Dell
- Sun Microsystems
- Capitalizing on the market opportunity
- Key success factors for successful vendors
- Amount of configuration options
- Target and expand the right processes
- Develop SMB specific functionality
- Vendors should focus on a small number of key selling points
- Provide SaaS delivery to applications in a modular, expanding fashion
- Vendors need to continue to educate the market about issues such as security
- Configuration, configuration, configuration should be the mantra of SaaS vendors
- Index
List of Figures
- Figure 3.1: The hidden costs of on-site deployments
- Figure 3.2: Advantages of the SaaS and on-demand delivery models
- Figure 4.3: Relative opportunities for SaaS within SCOR process groups
- Figure 4.4: Perceived inhibitors to SaaS adoption within manufacturing companies
- Figure 6.5: Challenges for software providers
- Figure 7.6: Key success factors for successful vendors
- Table 2.1: A comparison of on-premise and SaaS delivery models
- Table 2.2: Features of the on-demand delivery model
- Table 2.3: Distinguishing between hosted and SaaS applications
- Table 4.4: The CRM vs on-demand CRM global market, 2004-2009 ($m)
- Table 4.5: The ERP vs. on-demand ERP global market, 2004-2009 ($m)
- Table 4.6: Deployment of different software delivery models in higher education institutions