SaaS Week

Krissi Danielson

Large Vendors Buying into SaaS

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With the exception of Oracle, and perhaps Microsoft, it seems the large software companies out there are buying into SaaS -- literally. This week, EMC confirmed rumors that it would buy Berkeley Data Systems -- maker of Mozy, an online backup service. With recent SaaS acquisition announcements by companies like Adobe, Yahoo!, Cisco, and others, the trend definitely seems to be for vendors to enter the SaaS market through buying existing services.

Liam Lahey of eChannelLine reported on EMC's announcement and interviewed analysts who said the move is further evidence of the changing landscape for the SaaS field, and that the online backup field is increasingly "ripe for prime time." Lahey quotes IT analyst Michelle Warren of Info-Tech Research Group as saying, 'When major, tier one vendors move into a market especially through acquisition it is an indication that a market is maturing . . . EMC and Seagate entering it is a huge indication that this market is maturing."

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