SaaS: The Model Continues to Excel

With all of the recent M&A and funding activity happening in the enterprise software space, we stopped to pay special attention to a new J.P. Morgan report this week, Software as a Service Primer Refresh – 2013. This report updates a look at Saas from two years ago, with the firm reporting that they continue to provide much needed support for investors as they continue to invest in SaaS vendors.

Some highlights from the report:

Demandbase is one of the vendors profiled in the report; we’re pleased to be featured and to continue to provide our customers with added value. Sitting at the intersection of SaaS, Marketing technology and Ad Technology is an exciting place to be.
  • SaaS will likely expand the aggregate market as it enables companies (especially SMBs) to use enterprise technology that it may not be able to without more resources;
  • IDC expects the $22.9B SaaS market to grow at a 24% CAGR to $66.9B in 2016 – that is just three years from now.;
  • Application products, such as CRM and other collaborative applications, accounted for 63 percent of total SaaS spending in 2011, more than the 26 percent spent on infrastructure and 11 percent spent on application development.;
  • SaaS solutions are increasingly reaching beyond the SMB market to large enterprises – we know this through our own customer base, and J.P. Morgan confirms this trend as enterprises also see cost benefits of the model;
  • Demandbase is one of the vendors profiled in the report; we’re pleased to be featured and to continue to provide our customers with added value. Sitting at the intersection of SaaS, Marketing technology and Ad Technology is an exciting place to be.

There continues to be a lot of attention on and adoption of the SaaS business model, and the growth isn’t expected to slow anytime soon. We expected that VC funds will continue to be directed towards SaaS and further acquisitions in the space.

Our CEO, Chris Golec, will be speaking on a panel at JP Morgan’s 3rd Annual Cloud & Beyond Conference, today, Thursday, June 13 – touching on some of these very same topics. If you are attending, don’t miss his session!