Wave of SaaS Consolidation Gains Momentum

Michael Vizard
Slide Show

Negotiating a Secure SaaS Contract

Nine key tactics for ensuring that security is built into your SaaS solution.

There's been a fair amount of acquisition activity of late across the entire software-as-a-service (SaaS) ecosystem, the latest of which being a move by Citrix to acquire ShareFile, a provider of document storage and collaboration services in the cloud.

According to ShareFile CEO Jesse Lipson, what really distinguishes ShareFile from a raft of SaaS competitors in this category is the enterprise-class security that the company has wrapped around all the documents and applications that are managed by the service.

Citrix, of course, already offers a raft of SaaS services, including the popular GoToMeeting application, so it's natural that Citrix would want to extend its reach into online document management and storage.

But it's also apparent that there is something of a land grab going on in the SaaS application space that should ultimately wind up reducing the number of SaaS vendors that IT organizations need to deal with as the major providers continue to expand their portfolios. Longer term, IT organizations should expect to see any number of distinct SaaS application services start to converge, especially when you consider how many of these services are, in reality, just features of a larger application.

The consolidation of the SaaS application category is still going to take some time to play out. But a process being driven by IT managers insisting on reducing the number of SaaS vendors delivering redundant services inside their organization is more than well under way.

Add Comment      Leave a comment on this blog post
Nov 2, 2011 11:16 AM Jeremy Jeremy  says:

It's an interesting acquisition. I wonder if they're planning on launching a stand alone product with this newly acquired technology, integrating it into an existing product, or both?


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