The majority of the top 25 UK software companies are already on the road towards delivering a software as a service (SaaS) model but some of them are failing to promote the fact effectively, according to analysis by TechMarketView.
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According to its Cloud Compatibility Grid model, the largest proportion of the top 25 had some cloud or SaaS products but were mainly on-premise or provided a mix of on and off-premise solutions sales. The company also found there were only three companies that appeared to have no cloud or SaaS products at all.
Reflecting on the results of the report, its author, research director Philip Carnelley, said that the companies were "probably a bit further along than I thought". He said one of the reasons was that some providers had started down the SaaS road but their marketing was not particularly helpful, using terms such as hosted solutions or even ASP, "which I thought had died out five years ago".
"The great majority are dipping their toes in the water, experimenting with SaaS or piloting it," he observed.
He had been surprised at how far along some companies had progressed, singling out Fidessa which has achieved more than half of revenues from SaaS sales.
Four of the companies were 'pure-play' SaaS providers: Kashflow, 4Projects, Liquid Accounts and NewVoiceMedia.
Carnelley said their success demonstrated that it was easy for start ups to launch a new product and roll it out using SaaS but their main challenge was in acquiring customers who were ready to change the way they do things.
Most of the top 25 UK software companies are vertical industry specific or operate in areas where local knowledge and local rules and regulations are important, such as accountancy. This partly insulates them from competition from larger players outside the country.