TechValidate Survey Report: SaaS Application Trends and Challenges

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1 TechValidate Survey Report: SaaS Application Trends and Challenges

2 TechValidate Survey Report: SaaS Application Trends and Challenges 2 The current growth rates and investments in SaaS are astounding. In 2016, SaaS is forecasted to account for 25% of all new business software purchases 1. Technology innovation for SaaS received $11.7B in VC funding in 2014, a 70% YoY increase 2. Why are companies implementing and deploying SaaS solutions, and what are their biggest concerns and challenges? How does Akamai stand up to these challenges? TechValidate Research surveyed over 60 Akamai customers in roles associated with choosing, implementing, and maintaining a SaaS platform. The results show a wide range of vertical and horizontal uses, the importance of web security, and the significance of SaaS application availability. Most Popular SaaS Applications Of the SaaS applications developed, there was a blend of horizontal and vertical web applications. Of the horizontal applications, 47% were for Service and Support, 41% for Business Intelligence/Analytics, and 31% for Collaboration. Of the vertical applications developed, 24% were for Marketing, 15% were for e-learning applications, 12% for Finance applications, and 10% for HR applications. Fast Fact Over 50% of CRM applications will be cloud based in Service and Support Business Intelligence/Analytics Collaboration Marketing Sales 47% 41% 31% 29% 24% Other E-Learning 15% 17% Finance 12% HR 10% Healthcare 7% Real Estate 2% 0% 10% 20% 30% 40% 50%

3 TechValidate Survey Report: SaaS Application Trends and Challenges 3 Top Concerns with Adopting SaaS The traditional software deployment model for on-premise software is expected to significantly shrink from 34% to 18% by The top concerns with adopting SaaS varied from business reasons to web application performance and security threats. Customer Satisfaction 61% Slow/unreliable control 49% DDoS attacks 34% Application-layer attacks 29% Loss of control 27% Top SaaS Challenges Addressed with Akamai Clients have adopted Akamai to improve global web and mobile application performance and availability. They also chose Akamai to defend web applications against DDoS and data breach attacks. Here the respondents indicated the top challenges that Akamai s cloud-based solution addressed. Poor web site and/or application performance 53% Reaching new users in new global regions in a timely, cost-effective manner 43% Difficulty scaling on demand to meet additional infrastructure 37% Inconsistent availability of site and applications 16% Need to maximize new users in new global regions in a timely, cost effective manner 14%

4 TechValidate Survey Report: SaaS Application Trends and Challenges 4 Protect Data and Defend Against Attacks Businesses need to innovate without fear. Unfortunately, web security threats, such as DDoS attacks and data breaches, represent very real vulnerabilities for SaaS application providers. Akamai s highly scalable, always-on Cloud Security Solutions defend against these threats, helping to reduce the risk of network downtime, protect revenue, and maintain web application performance during cyberattacks. Fast Fact Software and technology companies ranked #2 in DDoS attacks in Q % say security is a top concern (IT & business managers) 5. Web Security Challenges Addressed with Akamai Downtime 56% Poor performing web sites and applications due to cyberattacks 24% Revenue loss due to downtime caused by cyberattacks Brand issues/customer trust issues due to cyberattacks 9% 9% Corporate and regulatory compliance 9% Personal identifiable information protection and loss 4% Why Akamai Cloud Security Why Akamai Cloud Security Coverage: we needed 24/7 always on security coverage 36% Expertise: we needed additional intelligence and knowledge from outside experts Proactive: we wanted to be ready to respond to today s changing threat landscape Cost: we wanted to save on our security coverage 23% 25% 25% Spend: we were looking for an operational vs. capital expense model (OPEX vs. CAPEX) Compliance: we were responding to an upcoming audit or internal directive 14% 14% 0% 10% 20% 30% 40%

5 TechValidate Survey Report: SaaS Application Trends and Challenges 5 Why Akamai for SaaS Why Akamai for SaaS In-country presence with global reach 51% Self-service functionality to manage solutions 33% Breadth of insight and expertise 27% Cloud-based approach (cost and time avoidance associated with alternative... 24% Customized service options that meet business objectives 18% Operation expenses vs. capital expense 16% Ability to solve complex problems 12% Conclusion The SaaS market has experienced tremendous growth during the past several years, which has accelerated the transition of on-premise hosted applications to web applications that are hosted in the cloud and accessed over the Internet. The growth of the market, combined with sky-high expectations of customers, has introduced new business and technical challenges that SaaS providers must address in order to maintain a competitive advantage. Akamai s Web Performance Solutions enable SaaS providers to deliver all their SaaS applications to any user (e.g., customers, partners, and suppliers), on any device, anywhere in the world by overcoming the inherent challenges related to web performance, reliability, and security. Additionally, Akamai s cloud services provide SaaS provider-specific capabilities on top of Akamai s Web Performance Solutions, bringing together Akamai s globally distributed Intelligent Platform with a comprehensive, integrated collection of web performance and reliability capabilities designed to meet the unique demands of delivering Software-as-a-Service applications today and tomorrow. Sources: 1 IDC 2 CB Insights SaaS Trends Report 3 Gartner, 4 Akamai s [State of the Internet] Security Q Report 5 Exoprise Cloud Trends Survey 2014 of IT and Business Managers 6 IDC, Worldwide Enterprise Application Spend by SaaS and On-Prem, Gartner Worldwide CRM Spending By Vendor, 2013.

6 TechValidate Survey Report: SaaS Application Trends and Challenges 6 As the global leader in Content Delivery Network (CDN) services, Akamai makes the Internet fast, reliable, and secure for its customers. The company s advanced web performance, mobile performance, cloud security, and media delivery solutions are revolutionizing how businesses optimize consumer, enterprise, and entertainment experiences for any device, anywhere. To learn how Akamai solutions and its team of Internet experts are helping businesses move faster forward, please visit or blogs.akamai.com, and on Twitter. Akamai is headquartered in Cambridge, Massachusetts in the United States with operations in more than 57 offices around the world. Our services and renowned customer care are designed to enable businesses to provide an unparalleled Internet experience for their customers worldwide. Addresses, phone numbers, and contact information for all locations are listed on Akamai Technologies, Inc. All Rights Reserved. Reproduction in whole or in part in any form or medium without express written permission is prohibited. Akamai and the Akamai wave logo are registered trademarks. Other trademarks contained herein are the property of their respective owners. Akamai believes that the information in this publication is accurate as of its publication date; such information is subject to change without notice. Published 02/16.

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