News Feed Item

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

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


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.


• 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?

Table of Contents

The Future of Software Delivery

Executive summary 10

New software delivery models 10

The changing IT landscape 11

Future opportunities 11

Managed application hosting 12

Pitfalls of new software delivery models 13

Vendor activity 14

Chapter 1 Introduction 18

What is this report about? 18

Who is this report for? 18

Definitions 19

Application service provider 19

Hosted applications 19

Managed application hosting 19

On-demand 19

On-demand subscription fees 20

On-premise applications 20

Service-oriented architecture (SOA) 20

Software as a service (SaaS) 20

Chapter 2 New software delivery models 22

Summary 22

Introduction 23

Software as a Service 23

Characteristics of SaaS 25

Ownership 25

Location 25

Payment 25

Tenancy 25

Growth in the SaaS market 27

The market opportunity 27

On-demand 29

Growth opportunities for on-demand 30

Application hosting 31

The ASP legacy 32

Outsourcing 33

Cloud computing 34

Web 2.0 34

Concluding thoughts 35

Chapter 3 The changing IT landscape 38

Summary 38

Introduction 39

How did IT come to be delivered as a service? 39

The next big thing 39

Disadvantages of the on-premise model 40

Cost 40

Implementation 41

Support and maintenance 42

The benefits of new software delivery models 42

Lower IT costs 43

More manageable costs 43

Familiar pricing model 43

Faster and easier implementation 44

Less software needed 44

Easier upgrades 44

Faster time to value 44

Greater access to new applications 44

Stronger ties between IT and business goals 45

Easier to manage 45

Scalability 45

Disaster recovery readiness 45

Chapter 4 Future opportunities 48

Summary 48

Introduction 49

CRM: the starting point for SaaS and on-demand 49

CRM market opportunity 50

Other application areas being delivered as a service 51

The ERP market opportunity 51

Business intelligence (BI) 52

Email 53

Others 53

Hardware as a service 54

Vertical opportunities 55

Financial services 55

The on-demand CRM market 55

Vendor spotlight 55

The benefits of SaaS for manufacturers 56

SaaS delivered technology can support a range of business processes 58

Go-to-market recommendations 60

Public sector 64

The on-demand CRM market 64

Higher education 64

Benefits of SaaS for institutions 65

Higher education processes suitable for SaaS delivery 65

SaaS in operation 68

Go-to-market recommendations 70

Communications 72

The on-demand CRM market 72

Utilities 72

The on-demand CRM market 72

Regional opportunities for on-demand CRM 73

North America 73

Europe, Middle East and Africa 73

Asia Pacific 74

Central and Latin America 75

Chapter 5 Managed application hosting 78

Summary 78

Introduction 79

Trends influencing the hosted application market 79

More applications to be delivered through managed hosting 79

Managed hosting is growing vertically and horizontally too 80

Services as competitive differentiation for managed application hosting providers 81

Growing costs could limit managed hosting providers 83

Expect virtualization to help alleviate rising data center costs 83

Being more efficient could boost green credentials too 84

Chapter 6 The pitfalls of new software delivery models 88

Summary 88

Introduction 89

Customer concerns about new delivery models 89

Security 89

Infrastructure 91

Service levels 92

Regulatory concerns 92

Lack of customization 93

Culture 94

Challenge out-dated perceptions 95

Be patient 96

Challenges for software providers 97

Architecture 97

Service levels 98

Customization 98

Cost 98

Customer support 99

Security 99

Overcoming barriers to adoption 100

Educating the market 100

More applications needed 101

Stay flexible 101

Promote on-demand and SOA as related concepts 101

Conclusions 102

Chapter 7 Vendor activity and effective strategies 104

Summary 104

Introduction 105

Competitive landscape 105

There are no clear leaders in the SaaS market 105

Different vendors carry multiple SaaS product lines 106

Vendor offerings 107

Software providers 107

New-breed on-demand vendors 107

Traditional enterprise application vendors 112

Infrastructure providers 118

Amazon 118

IBM 119

EMC 119

HP 120

Dell 121

Sun Microsystems 122

Capitalizing on the market opportunity 123

Key success factors for successful vendors 125

Amount of configuration options 125

Target and expand the right processes 126

Develop SMB specific functionality 126

Vendors should focus on a small number of key selling points 129

Provide SaaS delivery to applications in a modular, expanding fashion 130

Vendors need to continue to educate the market about issues such as security 130

Configuration, configuration, configuration should be the mantra of SaaS vendors 131

Index 132

List of Figures

Figure 3.1: The hidden costs of on-site deployments 41

Figure 3.2: Advantages of the SaaS and on-demand delivery models 42

Figure 4.3: Relative opportunities for SaaS within SCOR process groups 59

Figure 4.4: Perceived inhibitors to SaaS adoption within manufacturing companies 62

Figure 6.5: Challenges for software providers 97

Figure 7.6: Key success factors for successful vendors 125

List of Tables

Table 2.1: A comparison of on-premise and SaaS delivery models 24

Table 2.2: Features of the on-demand delivery model 30

Table 2.3: Distinguishing between hosted and SaaS applications 31

Table 4.4: The CRM vs on-demand CRM global market, 2004-2009 ($m) 50

Table 4.5: The ERP vs. on-demand ERP global market, 2004-2009 ($m) 51

Table 4.6: Deployment of different software delivery models in higher education institutions 64

To order this report:

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


More market research reports here!

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Daniel Jones is CTO of EngineerBetter, helping enterprises deliver value faster. Previously he was an IT consultant, indie video games developer, head of web development in the finance sector, and an award-winning martial artist. Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
"NetApp is known as a data management leader but we do a lot more than just data management on-prem with the data centers of our customers. We're also big in the hybrid cloud," explained Wes Talbert, Principal Architect at NetApp, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.