Enterprise Software

Enterprise Software Products That Are Web Based Are Recession Friendly

Enterprise software solutions that are web based, such as SaaS, or software as a service applications are software solutions that are hosted by a third party over the web. The benefit of web based solutions is that they are easy to implement and deploy company wide, don’t need to be integrated with current legacy systems, and require no IT resources to get started.   These are very desirable features to cash strapped companies which is a main driver that is keeping SaaS enterprise software companies afloat and even excel during the tough economic environment.

This web based application sector which appears to be somewhat recession proof is best confirmed by seeing how a few key vendors in the in the software on demand or software as a service segment are performing.

The first vendor SuccessFactors, Inc.  is a prominent SaaS enterprise software vendor focused on performance and talent management solutions.  The company’s financial performance has been strong, with year over year revenues almost doubling in 2008 with the same strong results anticipated for 2009 exceeding previous estimates.

The next company as a reference is the SaaS vendor Omniture Inc. Revenues for the 2008 met expectations with double digit increase in 2009 expected with record operating cash flow performance.

Another prominent SaaS company, RightNow Technlologies announced Q3 revenues grew 24% year over year with a dramatic increase in net income over the prior year.  RightNow is a direct competitor to Salesforce.com and is facing fierce competition, yet it is holding its ground well in both its competitive battle with Salesforce and with the current economic climate.

One final SaaS company to add to the list is Citrix Systems which is the leading application delivery infrastructure solution. Citrix also saw a strong third quarter and is expected to beat analyst expectation for full year 2009.

Web based enterprise softwaer products offer very powerful tools to smaller sized companies, which has been a market sector missing from “big” enterprise software solutions.  Take a smaller sized accounting firm, for example. You will find that the company’s largest expense next to salaries and headcount are software costs which include installation, maintenance, upkeep and training.  The lower cost, high impact effect of SaaS enterprise software solutions and the subsequent high payback and ROI are making SaaS enterprise software solutions a winning capital investment for company’s.  The quick installation and deployment and significantly lower costs to run and maintain makes SaaS solutions a low risk high reward decision which is critical in today’s market climate.

Written by :

aniseo