I retired from personal blogging in July 2008.
But you can find me over at http://blog.xero.com.

Latest McKinsey SaaS report
Posted by rod@drury.net.nz in SaaS, TechBiz at 12:06 pm on Friday, 13 June 2008

RobinB flicked me this link. Very useful if you’re into SaaS. Easy to read format.

http://www.interop.com/downloads/mckinsey_interop_survey.pdf

Big points (italics mine)

  1. Software industry is on the upswing with SaaS a key driver.
  2. SaaS is becoming mainstream.
  3. Battle between traditional mega vendors and SaaS vendors.  Questions whether traditional vendors can transition.
  4. Demand driven by the SMB sector. Sales models are key. Huge new market
  5. SaaS momentum is happening faster than expected.
  6. Ease of conversion is key.  We see this at Xero.
  7. Growth in the sector should be immune from the current economic downturn.

Useful report the confirms a lot of the things we’re seeing.

Trackback uri |

Comments(3)

    Comment by max at 10:57 pm on 13 June 2008

    #7 - how come?




    Comment by Rod at 11:06 pm on 13 June 2008

    Because
    * SMB is such a broad and varied market. While some sectors slow, others keep going or growing
    * SaaS can save money and be more efficient
    * There is real business value




    Comment by max at 11:16 pm on 13 June 2008

    Just had a quick look through the report. He’s saying that the % of s/w spend in an IT budget is steady or growing (by 1%). Well, if it’s a downturn then the budget itself is shrinking. I strongly disagree with #7. No one is immune. Some may find it easier to live through the bad times, but definitely not immune.