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Posts tagged ‘SaaS Video’

Five Key Take-Aways From North Bridge’s Future Of Cloud Computing Survey, 2015  

  • bostonSaaS is the most pervasive cloud technology used today with a presence in 77.3% of all organizations, an increase of 9% since 2014.
  • IT is moving significant processing to the cloud with 85.9% of web content management, 82.7% of communications, 80% of app development and 78.9% of disaster recovery now cloud-based.
  • Seeking simple and clear relationships, over 50% of enterprises opt for online purchasing or direct to provider purchasing of cloud services. Online buying is projected to increase over the next two years up to 56%.
  • Vendor leadership/consolidation continues to take hold with 75% of enterprises using fewer than ten

These and many other insights are from North Bridge Growth Equity and Venture Partners’ Future of Cloud Computing Survey published on December 15th. North Bridge and Wikibon collaborated on the study, interviewing 952 companies across 38 different nations, with 65% being from the vendor community and 35% of enterprises evaluating and using cloud technologies in their operations  The slide deck is accessible on SlideShare here:

Key takeaways from the study include the following:

  1. Wikibon forecasts the SaaS is worth $53B market today and will grow at an 18% Compound Annual Growth Rate (CAGR) from 2014 to 2026. By 2026, the SaaS market will be worth $298.4B according to the Wikibon forecast. The fastest growing cloud technology segment is Platform-as-a-Service (PaaS), which is valued at $2.3B today, growing at a CAGR of 38% from 2014 to 2026.  Infrastructure-as-a-Service (IaaS) has a market value of $25B and is growing at a 19% CAGR in the forecast period.  Please see the graphic from the report below and a table from Wikibon’s excellent study, Public Cloud Market Forecast 2015-2026 by Ralph Finos published in August.

SaaS Graphic from North Bridge study


Public Cloud Vendor Revenue Projection

  1. Cloud-based applications are becoming more engrained in core business processes across enterprises. The study found that enterprises are migrating significant processing, systems of engagement and systems of insight to the cloud beyond adoption levels of the past.  81.3% of sales and marketing, 79.9% of business analytics, 79.1% of customer service and 73.5% of HR & Payroll activities have transitioned to the cloud. The impact on HR is particularly noteworthy as in 2011; it was the third least likely sector to be disrupted by cloud computing.
  1. 78% of enterprises expect their SaaS investments to deliver a positive Return on Investment (ROI) in less than three months. 58% of those enterprises who have invested in Platform-as-a-Service (PaaS) expect a positive ROI in less than three months.
  1. Top inhibitors to cloud adoption are security (45.2%), regulatory/compliance (36%), privacy (28.7%), lock-in (25.8%) and complexity (23.1%). Concerns regarding interoperability and reliability have fallen off significantly since 2011 (15.7% and 9.9% respectively in 2015).
  1. Total private financing for cloud and SaaS startup has increased 4X over the last five years. North Bridge and Wikibon found that average deal size rose 1.8X in the same period. The following graphic provides an overview of cloud and SaaS finance trends from 2010 to present.

cloud and saas financing


Executing on Innovation

Today Harvard Business Publishing released the following video interview where Vijay discusses his latest book, The Other Side of Innovation - Solving the Execution Challenge. You can download a sample chapter here for free. At just over 14 minutes, the video is worth watching and time well spent.

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Assessing the Cloud Computing Landscape: Insights from the MIT Enterprise Forum

Bottom line: The following video provides a topical, informative and useful update on the cloud computing landscape; it’s worth the 30 minutes to listen to and consider how rapid the development platforms are maturing.

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Thoughts on the Free Software Sales Model for SaaS Apps

For many enterprise software companies this is a very difficult subject as the control of the sales cycle is tantamount. Opponents argue that free software trials potentially derail sales cycles and give them less control.

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Video Explains Fundamentals of SaaS

Videos abound online explaining Software-as-a-Service (SaaS) and its underlying concepts. Many however are written and produced to promote applications, services and platforms and certain key concepts are often not covered.

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