MGI Research

Saturday, Sep 19th

Last update02:07:16 AM GMT

Software-as-a-Service (SaaS)

From buzzword to a multi-billion dollar market, software as a service (SaaS) has grown explosively.

  • Will the SaaS revenue growth continue?
  • Can SaaS software move beyond departmental/horizontal applications and displace legacy ERP systems?
  • What are the limits of SaaS applications?
  • How should CIOs evaluate the risks and benefits of SaaS vs on-premise solutions?
  • How can on-premise software vendors successfully transition to SaaS?
  • How can CIOs effectively balance SaaS with their legacy application software portfolios?
  • What are the best practices for evaluating and implementing SaaS solutions?
  • How should SaaS companies be valued? What are the best SaaS valuation metrics?

These are some of the topics addressed in MGI’s research agenda for SaaS.

Companies covered include, Kenexa, Success Factors, RightNow, WorkDay and many others - public and private.

SaaS Procurement: 20 Questions with the CEO of Coupa Rob Bernshteyn

The procurement software market is undergoing major disruption as SaaS companies offer a value proposition that many business executives find compelling.  Ariba (MGI Score: 577) and Concur (MGI score 958) are two publicly listed companies that compete in this broadly defined procurement/spend management market space.  Venture-backed Coupa now claims to be able to contractually guarantee its customers a 1% reduction in operating spend and a number of blue chip customers are already using this cloud-based solution. In an in-depth 20 Questions conversation with Andrew Daily of MGI Research, Rob Bernshteyn, the CEO of this Silicon Valley-based company sounds off on a spectrum of topics - from Coupa's approach to procurement and spend management to the role of central IT to the tradeoffs Coupa is making to stimulate growth and long-term market position. 

Using in Higher Ed - Interview with the CEO of Enrollment Rx

We view the Higher Education market as being ripe for a significant IT transformation. The higher education software vertical was once perceived as having little appetite for technology.  That is no longer the case. Today, higher ed is feeling the full force of all the disruptive technologies at a time when pressure to reduce costs is rising.  Enrollment Rx CEO Lawrence Levy joins us for 20 Questions, and shares his views on the major changes taking place in higher ed technology, as well as his experience of running his business on’s platform, and why the established CRM and SIS vendors in higher ed should be concerned about their customers.
Attachments: (For Subscribers)
Download this file (MGI Research - 20 Questions with Enrollment Rx CEO Levy.pdf)Using in Higher Ed

20 Questions with Rootstock Software CEO Pat Garrehy

Rootstock SoftwareUntil recently, successful SaaS companies have excluded core manufacturing functionality, and focused on departmental and/or horizontal functionality far from the plant floor.  That’s about to change. Rootstock Software, founded by a team of experienced manufacturing ERP experts, is creating a new generation of manufacturing applications based in the cloud. In this 20 Questions session with Rootstock Software CEO Pat Garrehy we explore the following key issues:

  • The feasibility of using a SaaS model for manufacturing apps
  • How to leverage cloud platforms like and NetSuite for complex applications and
  • The experience of selling and deploying SaaS manufacturing apps into customer environments of different sizes, locations and industries

Pat Garrehy is singularly qualified to share his views on these topics. Prior to his role as the CEO of Rootstock, Pat has served for over 20 years as the CEO of Relevant Business Systems, a full-suite ERP solution for defense and aerospace industries. Simillarly, Rootstock is unique amongst manufacturing-focused SaaS vendors to run in both the NetSuite and Salesforce ( clouds.

Attachments: (For Subscribers)
Download this file (MGI Research 20 Questions with Rootstock Software CEO Pat Garrehy.pdf)20 Questions with Pat Garrehy - CEO of Rootstock Software

The Midmarket Manufacturing Pursuit: Will SaaS Upstarts Unseat The Big Guys?

20 Questions with Mark Symonds, CEO of Plex Systems

SaaS upstarts are a real threat to the established revenue streams of the major enterprise applications vendors. Even with recent activity in the space – Infor buying Lawson, Apax’s acquisition of Epicor (and subsequent merger with Activant Solutions), Microsoft’s efforts with Azure and Dynamics, and SAP’s re-launch of Business ByDesign – it may be too little, too late for these entrenched leaders to make the cultural, technology and financial shift to push the SaaS delivery model into SMB manufacturing. Plus, customers remember the pain and disruption with their last ERP implementations; are they really ready to rip and replace? In this in-depth interview, Mark Symonds, CEO of SaaS ERP vendor Plex Systems, Inc., shares his perspective on whether the platform can handle the demands of complex manufacturing platforms, how the iPad is transforming manufacturing, and why SaaS vendors struggle when selling into medical device companies. MGI Research’s “20 Questions” is a C-level interview series with leading technology industry innovators, investors and executives.

Attachments: (For Subscribers)
Download this file (MGI Research 20 Questions with Plex Systems CEO Mark Symonds.pdf)20 Questions with Mark Symonds CEO of Plex Systems

Oracle's Next Cloud Move is RightNow

On Monday, October 24th 2011 Oracle (NASDAQ: ORCL) announced that it was offering to buy RightNow Technologies, Inc. (NASDAQ: RNOW) for approximately $1.5 billion. Oracle will pay $43 per share, a nearly 20 percent premium to RightNow’s closing price of $35.96 on previous Friday. We see the combination as a positive for both RNOW and ORCL. This is the first sizeable cloud software deal for Oracle. Remarkably, the acquisition Enterprise Value (EV) multiple is within 5% of what would have been predicted for RNOW by our SaaS valuation model in March 2011.

CLICK HERE to access the research note.

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