In the recent past, I have had the opportunities to deal with application rationalizations, replacements/migrations and had the chance to recommend suitable SaaS solutions in replacement for on-premise solutions. What do you think the response might have been?. Well, the customers are definitely interested in the solution, but they are not bold enough to take that first critical step due to various reasons such as requirement of new contracts/agreements, data security, provisioning, user management, switching/transition costs.
My point of view - the ideal & easiest situation for the end customers to adopt SaaS would be - the current application custodians becoming the actual Application owners. Yes, the IT service companies who currently manage the applications, to transform themselves as SaaS provisioning companies in the respective business domains. The Service companies that provide the seamless switch to their end customers from being an owner to consumer will add great amount of value.
If that happens, it could open the door for a brave new world where IT service companies start to create their own SaaS ecosystem to serve each other and their respective clients.
Of late, we are witnessing quite a few acquisitions in the market that could lead the way to the new ecosystem - HP-EDS in the past and Dell acquiring Perot Systems last week. Will Dell-Perot combination give HP-EDS a run for its money?. Not necessarily.
The question to be asked is - what is the new value that could be brought by these acquisitions to the end consumer?.
The IT infrastructure products & services market is clearly being disrupted by various factors such as virtualization, cloud computing/SaaS, etc. And companies are rapidly responding to the disruptions by complimenting their capabilities by suitable acquisitions.
As I mentioned earlier in this post, would these new IT infrastructure + Services combo deliver those new value Options or spend the next couple of years in just restructuring companies to increase more revenues?. We'll have to wait and see!