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Ovum recommends software vendors to strongly consider outsourced product development as a way to transition their products to SaaS.

Written by Devendra Deshmukh | Jun 22, 2008 8:17:00 AM

Ovum (www.ovum.com) , a consulting and advisory services with focus on convergence across telecoms, IT services and software. Ovum clients  range from start-ups to Fortune 500 companies and governments. They include IT vendors, IT service providers, technology user organisations, telecom operators, regulators, equipment suppliers, consultancies and investors.

Ovum recently published article 'Pass SaaS to India?' which is an extract taken from Ovum's Straight Talk service. This daily email bulletin provides Ovum's expert's views and opinions on important news and events in global IT and telecoms. This article discussed transition of traditional software products into software as a service (SaaS) offerings. Article further enlist challenges like costly technology & R/D investment required by Western ISVs (Independent Software Vendors) during transition of its legacy software products into SaaS/On-demand offering. Ovum strongly advised use of Outsource product development services by ISVs in US & Europe to control transition cost & benfit from technology, domain & process expertise.This article featured e-Zest as one of the Outsourced product vendor who is offering & benefiting from SaaS enablement /SaaS transition services. e-Zest is working with ISVs & SaaS startups for SaaS delivery consulting & implementation from last 3 years.

According to Gartner, a third of all software vendors will opt for transition to SaaS model in the next 3 years, and 40% of new applications will be built on it; which means if you are not on the SaaS platform, your competition might soon be.  Almost an year a back, e-Zest lauched 'SaaS enable your Software Products' as an OPD portfolio service, now with Ovum's recommendation it seems become a de-facto option for ISVs to use OPD services for SaaS transition/Saas enablement.