SaaS Solutions To Own 20 Percent of Commercial Email Sector

The software-as-a-service model, better known as “SaaS” model, for providing email solutions is turning out to be quite attractive for a major proportion of the customers and will account for as much as 20 percent of the entire commercial email market by the end of 2012, the analyst firm Gartner predicted.

The analyst firm in its report claimed that the email SaaS will have explicit and material impacts over the conventional third party product vendors, potentially bringing down the available market for third party applications by around one-fifth.

The research firm asserted that the SaaS email model accounted for a meagre 1 percent of the total commercial market back in 2007.

It has further notified that the vendors with the applications which help to protect, stabilise, and secure email systems will be among the hardest hit by this new shift favouring software services.

In addition to this, Gartner claimed that the applications essential to running premises-based email systems will be impacted, as the SaaS model deployment will offer services for redundancy as well as recovery, all sorts of reporting options, carry out version upgrade functions, protect content with its own spam and virus filters, etc.

Commenting upon the email SaaS model, Matt Cain, vice president for Gartner Research, said in a statement, “In many ways, email is the ‘litmus test' for the SaaS model, disrupting a pre-existing set on on-premises-related businesses. We can expect similar third-party dynamics to occur in adjacent collaboration spaces, such as instant messaging and virtual workspaces”.

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Our Comments

SaaS based email services have long been with us but it is only in the past few years that they have been getting the attention they deserve. With the current recession and the advent of fast, always on broadband connection, it won't be surprising that SaaS offerings will become more attractive to the market, especially amongst small and medium businesses.

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