Old timers who reminisce of the “big iron” days of mainframe computers and those bulky green screen desktop terminals with just text and flashing dashes, will rejoice again. As the “hype cycle” of cloud computing solutions and SaaS services (software as a service) settles down and the glitches get worked out we will see the continued improvement and development of SaaS applications within a wide range of sectors. Soon to be reminisced by the next generation will be those bulky desktops and laptops to be replaced by pen sized projectors displaying your monitor on any surface with a virtual keyboard all wirelessly connected to either your public or private cloud network of business solutions.
The development of SaaS solutions is growing at a rate five times faster than non Saas solutions earning $7.5 billion in 2009 with the majority of that coming from customer relationship management and customer communication tools. (Gartner Research) As the industry excellerates we will see continued growth of cloud computing solutions in a wide variety of sectors such as healthcare, hr, compliance, legal, messaging communication, content management and supply management.
One area that may need to come up to speed, particularly with consumer SaaS solutions, is overcoming the psychological aspect of having “stuff” scattered throughout some unseen virtual world. Security within developed Saas applications will need to be the driving force or else your company’s social media network will let the world know of its mistake.
Stayed tuned for discussion on valuations and multiples for SaaS solution companies.