SaaS Won’t Kill On-Premise Software
Software as a service. Cloud services. If you believed the hype, you’d think all managed service providers (MSPs) need to completely shift their customers from on-premise solutions to online solutions. But many of the strongest SaaS proponents still launch on-premise solutions for MSPs. Why? Because 80 percent of the software market will involve on-premise IT for years to come.
Just yesterday, Zenith Infotech launched an on-premise business continuity appliance that stores 48 hours of backups at 15-minute intervals, 14 daily backups, 5 weekly backups and 30 day backups. The appliance arrives even as Zenith continues to evangelize its SAAZ managed services platform.
Similarly, Datacastle Corp. is pushing forward with a data protection strategy that features on-premise and SaaS solutions. (Stay tuned for more news within the next few weeks.)
No doubt, SaaS and cloud services are fast-growth markets for MSPs and VARs. But the SaaS pond is far smaller than the on-premise ocean.
Consider this: SaaS represented only 6 percent of the overall software market in 2007, though SaaS will grow to represent about 18 percent of software sales by 2013, Gartner estimates.
So I ask you this: If SaaS does grow to command 20 percent of the software industry, can you really afford to ignore the other 80 percent of the software market?