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Has Cloud in Enterpise reached a “ripping” point?

Hat tip to Tech Trader Daily!

Citigroup’s software analyst in San Francisco, Walter Pritchard, wrote a research report today with some interesting and insightful observations. It is based on an interview with the CEO of Appirio, a Cloud SI and hence represents one (or is it two?) person’s view. It is still a worthy read and I’d like to hear from your own experience. Let me know via comments.

Walter posits:

  • SaaS, market for enterprise applications has arrived at a “ripping point,” by which he means that the practice of ripping out older software and replacing it with cloud-based, hosted applications, appears to be accelerating.
  • “Staggering” amount of Siebel replacements underway
  • Many companies are taking a “Cloud-first” approach, preferring cloud over traditional software for new projects
  • PaaS is the next big battle in Cloud
  • Brand new SaaS software will replace “legacy” ERP programs such as HCM
  • Advantage: Multi-tenant SaaS

Do you agree? What other data/trands do you see?

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