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IDC: SaaS Threatens Partner Revenue and Profit Streams

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IDC has released a study on the emerging SaaS channel in which it concludes that Software-as-a-Service may have a serious impact on traditional partner revenue streams.

In the press release, senior analyst Erin TenWolde said, "Two big wrinkles for partners are obviously the subscription revenue stream associated with SaaS solutions as well as selling 'virtual' products where there is nothing to physically ship, implement, or keep on the shelf. This is going to drastically change the way partners and SaaS providers engage with one another in the future."

Darren Bibby, also a senior analyst, predicted a shift of technology-centric solution providers to business process consultants and the emergency of new partner types.

The study also concluded that nascent partnering models still exist in the SaaS ecosystem but that activity is occurring on a trial and error basis, that VARs face potentially large challenges in securing revenue in resale scenarios, and that new solution providers will emerge to develop discrete expertise in niche areas.

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SaaS Week discusses market trends and roundups of Software as a Service (SaaS) industry news, along with social networking, collaboration, and other neat enterprise Web 2.0 technologies. SaaS Week also offers Q&As with interesting Web 2.0 and SaaS vendors.

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