According to researchers, Siemer & Associates, the Software-as-a-Service (SaaS) market is projected to grow 16.8% this year to $16.7 billion. The researcher believes that the growth in the market is driven by increased adoption of CRM, ERP, HR SaaS tools and the need for mobile apps for corporate applications. Another report estimates the SaaS market to be worth $22 billion by the year 2015.
Sramana Mitra: Through this there is a whole operational infrastructure – a reporting, monitoring and IT management infrastructure – that is required. What is your approach to that?
Vishnu Bhat: The cloud ecosystem harbors a productized solution. When we approach our enterprise clients, we predominantly offer service and solution value together. Let’s get back to the example of the client for whom we built the cloud ecosystem and are managing it for them. >>>
Sramana Mitra: We have been hearing about hybrid, public and private cloud for a while. We talked with all sorts of thought keaders in this space. We would like to hear some insights.
Vishnu Bhat: Let me give you a view of our evolution in the space of what we call ecosystems for enterprises and enterprise integration. What makes our approach unique in today’s setup? When we look at a hybrid ecosystem, for example, it poses a significant challenge for enterprises. >>>
Sramana Mitra: I would like to spend some time on three of your clients. Explain some interesting trends and applications of cloud computing you are seeing.
Vishnu Bhat: We have seen the interest in cloud computing and the setting up of an ecosystem around it. It started out with retail initially, but we are now seeing that it is happening across the globe. >>>
Sramana Mitra: Do they belong to the Boston group?
Skip Smith: No. I can’t say where they are based, but it is west of the Mississippi.
SM: Tell me more about this Boston pocket of entrepreneurs. >>>
Earlier this year, digital publishing solutions provider, Adobe (Nasdaq:ADBE) announced plans to shift its revenue model to a subscriptions-based one. It planned to gradually shut down support and sales of perpetual license products and instead get users to subscribe to them by charging an annual or monthly fee. The basic subscription costs $19.99 a month, and the entire Adobe Creative Cloud bundle is available at $49.99 a month. But not all customers were pleased with the move as it meant that they would have to shell out more per month instead of the one-time license fee paid earlier. But in the recently ended quarter results, it appears that Adobe has managed to suppress all doubts as its performance exceeded market expectations.
Sramana Mitra: Seeing that hybrid cloud trend, in general, what functions and workloads are on private cloud, and which ones are on the public cloud?
Vishnu Bhat: What we see is a trend of evolution. We see a trend of hybrid cloud evolution, and we believe that every client has to evolve its own cloud ecosystem. This is a combination of private and public cloud infrastructure. >>>
Sramana Mitra: And they don’t have mature markets and trading platforms.
Skip Smith: And the data is kept in spreadsheets. There is no enterprise system that is housing this data. You have all these sources of manually created data, which we know has errors in it, and it gets aggregated into the central source. I think that is going to be critical [to find a different way]. >>>