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 MyCustomer.com 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.