Posted by Joe Diamond on Thu, Oct 01, 2009 @ 11:24 AM
Ray Wang, a partner at Altimeter Group, compiled revenues for some of the larger on-premise and cloud-based providers and discovered an interesting trend. In yet another tribute to Neil Patrick Harris, wait for it... SaaS vendors are seeing year-over-year revenue gains and on-premise vendors, on average... aren't.
Wang's analysis:
"Continued economic pressures force customers to choose best of breed and purpose built solutions. SaaS vendors appear to be the beneficiary as the overall business model aligns with client pain points."
This mirrors what we here at LiveOffice have been seeing within the industry as well. The cloud gives organizations the opportunity to implement solutions that remedy some of their most vital business needs (such as email archiving), at a price that won't have the CFO bawling while keeled over the books. This is all part of a compelling story that will seemingly keep the cloud sky high for years to come. We're just happy to be a part of it.