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Information Technology News SaaS set to cause major disruption, says IDC
Information Technology News SaaS set to cause major disruption, says IDC | SaaS set to cause major disruption, says IDC |
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| by Stuart Corner | |
| Tuesday, 25 September 2007 | |
  
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Erin TenWolde, IDC's senior analyst for SaaS, said: "Two big wrinkles for partners are obviously the subscription revenue stream associated with SaaS solutions as well as selling 'virtual' products where there is nothing to physically ship, implement, or keep on the shelf...This is going to drastically change the way partners and SaaS providers engage with one another in the future." Darren Bibby, IDC senior analyst, for software sales channels, observed that: "One of the interesting things to watch in the coming years will be the shift of technology-centric solution providers to business process consultants that can help customers get the most out of their SaaS solutions. We will start to see some new types of partners emerging." IDC found that: - there are still nascent partnering business models in the SaaS ecosystem. "Based on interviews with SaaS providers there is still a lot to learn and most of the activity is occurring on a trial and error basis." - traditional channel partners, particularly value-added resellers (VARs), have some potentially big challenges ahead, particularly in terms of securing top line revenue in resale scenarios. "This will have implications on the valuations of VAR businesses, which have traditionally been valued based on a multiple of revenues." SaaS removes many of the traditional IT challenges and IDC believes that there will be new solution providers emerging that are more business-process oriented rather than technology-focused. "Those partners that can develop discrete expertise in niche areas will be well positioned to take advantage of the vast SaaS opportunity."{moscomment} |
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