Popularity of SaaS makes providers 'targets for mergers and acquisitions'

The expanding popularity of software-as-a-service (SaaS) could lead to organisations taking over other companies in a bid to respond to their audience, according to a new report.

Aileen L Saringan, a corporate strategies expert writing in BusinessWorld Online, explained that those organisations creating the likes of time billing software and resource scheduling software could be the direct target of larger companies aiming to get a foothold in the market.

She noted that the future in SaaS lies in the industry's pay-per-use or subscription basis, removing all burden from a company which until adoption has instead relied on legacy servers and in-house software which needs constantly updating.

As a result, major deals have been brokered between major players in all markets, including Oracle and Sun's partnership and the handshake between Dell and Perot.

Earlier this month, David Linthicum said in a piece for the Intelligent Enterprise Blog that SaaS will integrate more with on-premise systems in the coming years, in turn opening the market more for hosted IT providers.

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