SaaS on the fast track

Share this article:

"SaaS is the future of the software business," says Mike Fitzgerald, managing general partner of Commonwealth Capital, a venture capital firm. He explains the SaaS marketplace is hot, as firms look to back the next Salesforce.com.

Since its IPO three years ago, Salesforce.com's shares have quadrupled in value to a total market capitalization of $5 billion.

And the SaaS IPOs continue. In July, NetSuite, which sells on-demand software for accounting, e-commerce and Internet marketing, announced its IPO. And in August, Convio Inc., an on-demand provider of software to nonprofits, followed suit.

There have also been several high-profile acquisitions. Most recently, Commerce Planet agreed to acquire Iventa, the developer of the Dashboard System, a SaaS e-commerce system. In the spring, Hewlett Packard announced that it would acquire Logoworks, a Web-based graphic design service.

One reason for the current success of SaaS is because IT professionals finally seem to be getting comfortable with the concept of on-demand software. According to a recent survey of IT professionals by Cutter Consortium, 34 percent of respondents were considering using SaaS in 2005. By 2006, that number had increased to 43 percent. The number currently using SaaS remained constant at 31 percent.

Share this article:

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

News Byte: Comcast Expanding Global Ad Delivery Through Partnership

News Byte: Comcast Expanding Global Ad Delivery Through ...

Through a partnership with Adstream , Comcast's AdDelivery Service expands its footprint across the globe.

40 Under 40 2014: Nominations Are Now Open!

40 Under 40 2014: Nominations Are Now Open!

It's time to nominate the 2014 crop of young marketing luminaries for Direct Marketing News's 40 Under 40 Awards. The deadline is Friday, June 6, 2014.

News Byte: MediaCrossing Partners with ASL Marketing on Youth Marketing Tool

News Byte: MediaCrossing Partners with ASL Marketing on ...

The digital media trading firm and marketing database company aim to help marketers target 13 to 34 year olds.