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Are We Closing in on Saturation for Some SaaS Segments?

Posted by Bob Warfield on November 12, 2008

While a vocal group continues to dither on whether SaaS is a permanent fixture, whether their on-premises company should get involved, and many other questions, the SaaS industry has been marching along.  I noted some interested statistics in an article from gleaned from a Software Satisfaction Awards survey:

–  60% of SME businesses are using a SaaS solution for CRM.  1/3 of Medium and Enterprise use SaaS for CRM.

–  50% of Medium businesses use a SaaS HR solution with the figure rising to 75% for talent management.

Those are much higher adoption rates than I would have guessed.  One starts to wonder with numbers like 60% and 75% whether some of the segments aren’t getting pretty fished out.  The survey represents 5,000 respondents, but I have no idea how representative it really is.  If accurate, it would imply that companies like Salesforce or perhaps SuccessFactors need to open new market segments pretty soon.  Salesforce, of course, is moving up market into the Enteprise to an increasing extent.

Another tidbit:  one of the key ingredients for customer satisfaction was the ability to act on their suggestions quickly.  SaaS companies move a lot faster than others.

3 Responses to “Are We Closing in on Saturation for Some SaaS Segments?”

  1. rglauser said

    CRM and HR verticals seem to be getting their fill. It’s funny though how the IT guys are adopting SaaS for everybody else but themselves. What about SaaS for IT? and Spiceworks are a couple of early examples of SaaS for IT in a market that still seems to have quite a bit of greenfield opportunity. Especially as IT users become fed up with the client / server application upgrades that never seem to work as advertised.

  2. smoothspan said

    Help Desk as SaaS for IT is thriving. My own company, Helpstream, makes a Customer Service solution that can be used as such. But there are likely more categories possible.

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