Today, IDC predicted that cloud, mobile, social and big data would account for 80% of IT spending growth between now and 2020. In a forceful message, IDC sees 2012 as the start of a high-stakes battle as leading vendors “make bold investments and fateful decisions.” Frank Gent, senior vice president and chief analyst at IDC, said that large companies will face “crossroads moments” in 2012. “By the end of the year, we should have a good idea which vendors will – and won’t – be among the industry’s leaders at the end of the decade.”
In the enterprise software space, it is rapidly becoming clear that SaaS vendors are substantially impacting the legacy vendors. The IDC report recognizes this as part of their predictions. – “Other prime targets for acquisition include Cloud Application/SaaS companies…”
Companies built from the ground up as multi-tenant SaaS vendors have long recognized this market movement and are enjoying the solution replacement opportunities that it presents. However, it is important to note that trying to fake SaaS is no longer going to cut it (The Cloud Washing Days are Over for Enterprise Software Vendors). The legacy vendors are starting to understand this, hence the pending build up of SaaS acquisitions.
These vendors can no longer ignore the erosion that they are seeing in their installed maintenance base.