Archive for the 'saas' Category

SaaS Consolidation – Is it Time?

As the Software as a Service (SaaS) market is maturing, we’re beginning to see acquisitions and consolidation.

On, Sramana Mitra has an excellent analysis of the recent Intuit acquisitions.

I think she’s correct on the acquisitions/mergers directions for SaaS now it’s maturing.

The other driver is that as SaaS matures, the base services become commodities where it’s hard for providers to turn a profit. To build revenue they have to climb up the value chain by offering more value-add services on top of the base… acquisitions are a faster way for the larger SaaS consolidators to do that.

I think Intuit will likely be one to watch in this space, in addition of course to the likes of Google, Oracle, and Microsoft.

But not all consolidators will succeed – there’s a lot involved in turning a traditional software license-driven business into a SaaS model as I’ve discussed before in this article on the impact of software trends.

Enter your email address to follow this blog and receive notifications of new posts by email.