The Result of the Growth in SaaS Sales

Since the demand for Software as a Service (SaaS) continues to grow, more and more software vendors are realizing the significance of developing SaaS delivery software solutions. A huge portion of the market belongs to small and medium-sized businesses, though huge corporations are also considering the switch. Though not accepted at first, SaaS has become one of the fastest growing industries today. The search for a better alternative to on-premise software applications has been made possible through years of hard work and determination from the efforts made by SaaS vendors.

Because of this renewed passion for SaaS that software vendors are seeing huge numbers in terms of sales and usage. Among small businesses (SMBs) alone, a Connecticut-based research firm known as the Saugatuck Technology Inc. has reported an increase in SaaS adoption from 9% in the year 2006 to 27% in the year 2007.

Though there is an increase in the number of SMB subscribers, there are still some who were reportedly dissatisfied from the services that they got from certain SaaS vendors. Some claim that ease of usage and installation, and low cost make SaaS appealing than traditional on-premise applications, issues about flexibility and security are still being raised. Another research firm named Gartner Inc. has reported in 2007 that 45% out of the 307 US SMBs said that they do not trust the data coming from third party companies such as SaaS vendors. A very low 7% said otherwise.

This is indeed an ongoing challenge for SaaS vendors to prove to the world the integrity of their products. It is because of these issues that SaaS vendors are holding an annual SaaS Economic Summit to form new software strategies and evaluate current practices. 

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