Service Management and SaaS; mention them together and people will look at you as if you are some weird person. or is it? after all, SaaS has the last S as a Service :)

Recently, I met VP of Strategy for Service-now.com, an IT asset management SaaS firm. They are breaking grounds with several clients across the board. Usual issues with clients is that of data-security.

As SaaS is maturing, these issues are being worked around. For instance, the client gets ready for a higher price to pay for an on-premise service.  SaaS service provider cannot leverage economies of scale easily with this as it is no longer a shared services business. Clients also may not get the benefits of Shared services as they are demanding Managed services.

 The main point is that as Service Management goes mainstream, SaaS is picking up ground as well !

Opportunity for IT Consulting firms:
This provides significant business opportunity for consulting firms as most of the SaaS firms are primarily software firms and their professional services arms may not be as matured.

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