Application Service Providers

Table of Contents

1. Industry Overview 1

• Down the Time Lane... 1
• Evolution of SaaS Model... 1
• Software-as-a-Service (SaaS): A Quick Primer... 2
• Traditional Enterprise Software Model Vs. ASP/SaaS Model 3
• Why Software-as-a-Service (SaaS)? 3
• Application Suites Vs. Best-of-Breed Products 4
  • Best-of-Breed Products and Services 4
• Applications Growing Abound for SaaS... 5
• Numbers Speak 5
  • Table 1: World Recent Past, Current & Future Analysis for SaaS Applications Analyzed with Annual Sales Figures in US$ Million for Years 2006 through 2012 6
• Enterprise Software Applications - A Prelude 6
  • SaaS-based Enterprise Applications By Select Category - Front Office, Back Office, Desktop, and Collaboration 7
  • Leading SaaS Enterprise Application Software Vendors/Providers by Application Segment 7
  • On Demand Spend Lock Horns with On Premise Spend 8
    • Table 2: Worldwide Annual Sales of Enterprise SaaS: Market Estimates and Forecasts in US$ Million for Years 2006 through 2012 8
    • Table 3: World Enterprise Software Application Spending (2008 & 2012): Percentage Share Breakdown by Category - On Premise and On Demand 9
  • Leading SaaS Applications 9
    • Table 4: Worldwide Annual Sales of SaaS-Based Enterprise Application Software by Application - Content Management, Collaboration and Communication; ERP; SCM; CRM; Digital Content Creation and Office Suites; and Others: Estimates and Forecasts in US$ Million for Years 2006 through 2012 9
  • Customer Relationship Management - A Key Application Area for SAAS 10
    • Table 5: Worldwide Market for Saas in Customer Relationship Management (CRM): Estimates and Forecasts in US$ Million for Years 2006 through 2012 10
    • Table 6: Worldwide Spending in Customer Relationship Management Market (2007 & 2012): Percentage Breakdown by Category - On-Premise and On-Demand 10

2. End-Use Industry - An Overview 10

• Industry/Vertical Specific Applications Gaining Traction... 10
  • SaaS for Insurance Sector Still in Nascent Stage... 11
  • Other Potential 11

3. Trends & Issues 11

• Economic Recession: A Boon for SaaS Providers 11
• Internet Backs ' On Demand' Success 11
• On Demand Software Finds Edge 12
• Ad-Supported Revenue - A Key Driver for On Demand Software 12
• Year 2008 Witnesses A Flurry of New Product Introductions 12
• SaaS: Conquering Unexplored Domains 12
• Moving Beyond SMBs 13
• Software Vendors and IT Solution Providers Adopting Subscription-Based Business Model 13
• Challenges to Reckon With... 13
  • Limited Flexibility 13
  • Security and Privacy: A Matter of Concern... 14
  • Other Pitfalls of the SaaS Approach 14
  • Ad Hoc Support Services: A Growing Trend 15

4. Market Dynamics 15

• SaaS Gathers Steam... 15
• Limited Client Base - No Longer a Major Deterrent... 15
• Where Do VARs Stand in SaaS Space? 16

5. Competitive Landscape 16

• Competitive Overview 16
  • Table 7: World Market for On Demand Software (2005 & 2006): Percentage Market Share Breakdown for Leading Vendors - Salesforce.com, Cisco WebEx, Digital Insight, Citrix Online, Microsoft, Omniture, MessageLabs, Concur Technologies, Kenexa, IntraLinks and Others 17
  • Leading Vendors and Market Presence 18
• Pure Play Vendors' Pure Domination 18
• Large Vendors Turn Market Followers 19
• Latecomers, But Potential Challengers 19
  • Leading On Demand Software Vendors and Vendor Offerings by Software Segment 20

6. Application Service Provider - An Insight 21

• Need for Application Service Providers 21
• Classification of ASPs by Area of Focus 21
  • Specialist/Functional ASPs 21
  • Regional/Local ASPs 21
  • Enterprise ASPs 21
  • Volume Business ASPs 21
  • Vertical Market ASPs 21
• Classification of ASPs by Applications and Services Provided 21
  • Applications 22
    • Vertical Applications 22
    • Analytical Applications 22
    • Personal Applications 22
    • CRM Applications 22
    • ERM Applications 22
    • Collaborative Applications 22
  • Services 22
    • Core Services 22
    • Managed Services 22
    • Extended Services 22
• An ASP Model... 22
• Components of ASP 23

7. SAAS - A Regional Perspective 23

• The United States 23
  • US Leads World SaaS Market 23
  • Differentiation - the Buzz Word 23
• Asia-Pacific 23
  • SaaS Market in Perspective 23
    • Table 8: SaaS Market in Asia-Pacific (2006): Percentage Breakdown of Dollar Sales By Region - Australia, China, Korea, India, Singapore and Others 24
• Growth Drivers and Inhibitors in a Nut Shell 24
• Going Beyond CRM 24
• Competitive Landscape 25
• Analysis By Region 25
  • China 25
    • SaaS Market - Growth on Cards 25
    • ERP - The Leading ASP Application 25
  • India 25
    • SaaS Market Looks Bright and Cheerful 25
      • Table 9: Indian IT Services Market (2006 & 2010): Percentage Breakdown of IT Services Budgets by Category - SOA Budgets, SaaS Budgets and Others 26
  • Purchases through Vendor' s Representative: An Established Software Delivery Mode 26

8. Strategic Corporate Developments 27

9. Product Introductions/Launches 49

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