Corporate strategy expert Sramana Mitra had a nice post yesterday that looked at a broad spectrum of the burgeoning Software as a Service (SaaS) market. Companies like salesforce.com, Inc. (NYSE: CRM) are revolutionizing the software industry by providing hosted versions of traditional software packages and essentially renting them to customers. Customers benefit by paying less money upfront and don't assume the cost of ownership, opting instead to rent software from SaaS companies. Updating and maintenance of software is handled by SaaS firm.
I've been looking at Concur Technologies, Inc. (Nasdaq: CNQR). Concur's solutions address automate corporate travel and expense management. Larry Schutts had a good post on the firm saying:
Its flagship program provides the process and information for management to reduce manual processing, improve internal controls, increase business policy compliance, speed up reimbursement, and increase expense report accuracy. The software features Web-based modules for tracking, submitting, and processing reports.
Large corporations like The Chubb Corporation (NYSE: CB), J.C. Penney Company, Inc. (NYSE: JCP) and Texas Instruments Incorporated (NYSE: TXN) are all looking to 1) manage complicated expense processing 2) lower costs.
SaaS companies are just in their infancy as more business look to rent rather than buy. Check out Taleo Corporation (Nasdaq: TLEO), RightNow Technologies (Nasdaq: RNOW), and Vocus, Inc. (Nasdaq: VOCS).
Zack Miller is the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.
Software as a Service? I do Concur
Posted Dec 19th 2007 6:16PM by Zack Miller
Filed under: salesforce.com inc (CRM)
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