Navigating the SaaS landscape

Are your users purchasing cloud applications on their own? How can you advise them and stay on top of cloud sprawl?


The enterprise cloud application market is a volcano on the verge of explosion.

The enterprise cloud application market is huge and growing at double-digit rates. You are mistaken if you think that enterprises can improvise through the onslaught of cloud-based services.

  • “SaaS and cloud-based business application services revenue will grow from $13.5 billion USD in 2011 to $32.8 billion USD in 2016, achieving a five-year CAGR of 19.5 %.”1
  • “By 2014, IT organizations in 30% of Global 1000 companies will broker (aggregate, integrate and customize) two or more cloud services for internal and external users, up from 5% today.”2

These staggering statistics from Gartner issue a warning about software for large businesses. They are telling you that the enterprise cloud application market is a volcano on the verge of explosion. And they are cautioning you to pay attention—because it is your responsibility to advise your business partners on what cloud applications are better and why and how to work with cloud vendors. To be an advisor to the business, you need to be on top of what is happening in the enterprise cloud application market.

Already, an untold number of vendors are crowding into the space—with more joining every month across a wide range of application types. This dynamic growth is of particular importance to IT application managers, whose job it is to understand vendor viability.

Take CRM, for example. According to Gartner:

  • 36% of CRM applications in the CRM software market were delivered on SaaS infrastructure in 2012. Gartner predicts that number will rise to 40% in 2013, and that by 2016, more than half of CRM applications in the CRM market will be delivered in the cloud.3
  • Compared to on-premises solutions, SaaS-based CRM will grow three times as fast from 2012 to 2016.3

CRM is just one of many enterprise application markets in which SaaS vendors are making a massive move. Like most IT managers, you likely realize this will become an issue, but have not had much time to think about the repercussions. Are you prepared to advise your business counterparts on which solutions best meet their needs?

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