SaaS: Earning A Second Look In 2009?

Software as a service stocks (SaaS) dropped more than 40 percent in 2008, according to our SaaS 20 Stock Index. But the index is holding its own so far in 2009, and MSPmentor readers indicate that they think that the SaaS sector is poised to have a strong year, according to our latest weekly poll.

Indeed, of the 89 readers participating in MSPmentor's weekly ending Jan. 9:

  • 15% percent of participants expect SaaS stocks to climb sharply in 2009
  • 40% think they'll climb slightly
  • 35% think they'll remain flat
  • 10% of readers think SaaS stocks will fall slightly
  • and no readers said they expect SaaS stocks to fall sharply
Admittedly, MSPmentor's weekly polls are not scientific and they attract an audience that's bullish about SaaS and managed services. Most software companies serving MSPs already offer a SaaS option or plan to introduce on this week.

My take: I expect SaaS and on-premise solutions to coexist for years to com. But it's good to see continued optimism about SaaS -- even during a week when Salesforce.com suffered a system outtage.

For ongoing coverage of publicly held SaaS companies check our SaaS 20 Stock Index.

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