SaaS Market share among the top three service models

According to Gartner's survey data, the global cloud computing market in the 2013 was 131.7 billion U.S. dollars, an annual growth rate of 18%, expected to reach $244.2 billion in 2017, and an annual growth rate of more than 15% in the next few years. With the global growth of the cloud computing market, SaaS (software as a service) model is increasingly recognized by enterprises, accept the speed is accelerating, but also almost by all it giants attention, SaaS market share is ranked among the three major service models of cloud computing. In its previous Gartner report, it expected global SaaS revenues to reach $12.1 billion trillion in 2013, a 20.7% increase from 2012 10 billion, and a forecast of 21.3 billion dollars in revenue by 2015.  saas application accelerated   Since the economic crisis, enterprises have been using SaaS (software as a service) service faster. Through cloud computing services, businesses are exempt from the cost of purchasing, installing, updating, and maintaining company equipment, using text, tables, calendars, and other applications directly through online software.   At the same time, if the industry's knowledge of cloud computing services is in the cost savings, then after several years of continuous trial and practice, cloud computing services to the enterprise IT operation and maintenance management complexity of the reduction of the new business development and operation of the promotion of industry competitiveness, is its real change effectiveness. According to a new IBM research report, nearly half of the companies that use SaaS are moving through it to gain a competitive advantage, not just relying on it to cut costs.   Office software ERP as an example, the traditional ERP system lacks scalability, does not have the data model to support the current quality management and regulatory requirements, often isolated in the enterprise organizational structure. The ERP system based on cloud model not only can solve this problem, but also can help to bring the products to market at a faster speed and enhance the agility of enterprise organization.   So in the enterprise application market, SaaS adoption speed is increasing. Research predicts that SaaS based applications in all manufacturing and distribution software will rise from 22% to 45% within 10 years. Especially for OA, financial management, CRM, ERP and other basic office software, more easily accept the SaaS model, will become SaaS application of the widest area.   On the one hand, the user market is increasingly active, on the other hand, the leading manufacturers continue to carry out a series of technical integration and service optimization to further enlarge the market.   In the past year or two, acquisitions around the cloud and SaaS have been staged, including the upstart of cloud service providers such as Salesforce.com, and traditional vendors such as IBM, Microsoft, Oracle, and SAP. And the latter is after the successful acquisition of technology, to become a SaaS service provider, with the pure SaaS vendors Salesforce.com, Workday and other fierce competition, in order to preempt in some majorSoftware market opportunities. In Oracle, for example, President Mark Hurd said in a conference call that Oracle SaaS applications achieved a 35% per cent increase in order volumes, with SaaS HCM, sales automation and ERP even achieving three-digit growth. "Our software business is growing more than twice times the workday revenue. (Oracle's total software revenue for the last quarter rose 230 million dollars over the same period last year, compared to $100 million in the same quarter workday).   Regional market differences show   in the current global cloud computing development into a smooth growth stage, regional market differences have gradually emerged.   The United States firmly occupies more than 50% of the market share, Western Europe (23.5%), Japan (4.5%) market share slowly decline, China (4%) and other emerging economies market share gradually increased. And as the market development and growth has a significant impetus to the suppliers, the United States-led giant enterprises also continue to strengthen their own dominant position. It is understood that in the world's top 100 cloud computing enterprises, the United States occupies 84, such as Amazon occupy the global IaaS market share of 40%, Microsoft accounted for the global PAAs market 64%,salesforce accounting for the SaaS market 21%.   Review domestic, China's cloud computing market overall plate in 2013 about 4.76 billion yuan, SaaS market size is smaller. Currently in the country, cloud host, cloud storage and other IaaS mode as the main form, Alibaba, Blue Flood, Jingdong, Ucloud, telecom operators, "foreign monks" Microsoft, and so on, and in the SaaS field, despite the Ufida, Jinshan and other software manufacturers, but the overall view of the application is still not rich. While the SaaS services of some international giants are starting to enter the Chinese market, driving the development of domestic cloud computing and SaaS Services, the problem of localization has made it difficult for domestic companies to meet the demand for some SaaS products. And it should be the local supplier of the backbone that promotes the domestic SaaS market, because the lack of software services and technology limits the pace of development of the current domestic SaaS market.   According to the Noda advisory report, compared with foreign countries, China's SaaS market development is still in the initial stage. Manufacturers for the single application of enterprises to provide SaaS services, such as online invoicing, online customer management, online ordering, etc., it is satisfied with the enterprise for a function of the software application, but not the effective integration of these applications. Although the domestic has a broad market potential, but the product can meet business needs, product ease of use, access to data speed, service continuity and stability, data security and backup is a matter of great concern to users, but also affect their choice.


Small and medium-sized enterprises as loyal supporters although the United States and Europe as the most mature cloud computing market, and SaaS services are the most accepted by users of the market, but the challenging economic environment has prompted many Chinese companies to abandon the purchase of hardware assets, to the cloud model. Forrester found that cloud services and SaaS products have earned revenue for many small and midsize Chinese enterprises in the past 12 months. Small businesses are turning to cloud finance and customer relationship management applications; cloud-based or managed human resource management and enterprise resource planning solutions are also favored by midsize private enterprises, and mainly from the manufacturing of coastal cities with huge cost pressures. And the change of it consumption pattern will help to achieve a small initial investment and overall cash flow, and these enterprises can also use better technology to improve the efficiency and control of the company's operations. Amazon, the cloud-computing giant, also says Amazon's development will largely come from the strong support of small and medium-sized businesses, which are loyal supporters of cloud services. Amazon chief technology officer Werner Vogels in an interview with the media, for example, in many countries, companies use the financial system has been quite old, with years of history, and small and medium-sized enterprises do not need to be in the financial work to introduce too much high-tech content. "The impact of Cloud and SaaS will be evident in small and medium-sized enterprises." Werner Vogels says.


Security remains a key challenge  saas services continue to attract industry attention, although IT departments are less worried about SaaS services and start sourcing, but users are not satisfied with SaaS services. The Noda advisory report says more than half of users are dissatisfied with the current SaaS service, accounting for about 80% of the total number of users. The reason for this result is that the current SaaS service market is mixed, the lack of corresponding quality standards and fees, making it difficult for users to have a sense of application of SaaS services.   At the same time, Gartner Research also points out that cloud services, especially those of SaaS services, have begun to notice the imperfections of the security provisions in cloud services contracts. It is expected that by 2015, 80% of IT procurement staff will be dissatisfied with the security provisions and protection measures in the SaaS contract. In SaaS contracts, there are often ambiguous terms, especially those involving data confidentiality, data integrity, and recovery after data loss. These issues have caused dissatisfaction among cloud service users, while increasing the difficulty of risk management by service providers. The problem of   safety and reliability is not only the development of the SaaS market, but also the important challenge in the development of the whole cloud computing market. He Baohong, director of the Internet center of the Ministry of Industry and Telecommunications, said that the development of cloud computing in China faces "supply and demand interlocking" problem. On the one hand, cloud computing enterprise scale, ability, level are not obvious, domestic cloud service industry turnover is equivalent to Amazon AWS One-fifth; On the other hand, the user confidence is insufficient, the industry application encounters the system obstacle, the user has insufficient confidence to the cloud service, more than 60% users are concerned about the cloud service stability   to standardize the market, to guide the healthy and rapid development of cloud computing industry in China, recently, by the Communications Development Division, the cloud Computing development and Policy Forum has implemented a "Trusted cloud service Certification", and announced the results of the first round of evaluation, including Alibaba, Baidu, Beijing-east, Blue flood, Century interconnection, Ucloud, Sina, Telecom, China Mobile 10 cloud service providers, 20 cloud services through the cloud computing development and Policy Forum certification. It is understood that "trusted cloud service Certification" First round of certification began in May 2013, the goal is to choose a safe and reliable cloud service provider to support. Shanku, director of   Communications development, said that the establishment and improvement of cloud services credit system is a necessary condition to promote the development of cloud services, the certification results not only represent the current development level of cloud service market in China, help to establish the benchmark of cloud service technology Service system, accelerate the development of other cloud services, It also helps to standardize the service and operation behavior of the domestic cloud service.