The next big shift in SaaS is an evolution from software as a service as a displacer to a disruptor. Displacement technologies compete with incumbents on the same buying parameters. Disruptive companies change the way a buyer thinks about solving their need. Most SaaS products today are displacers.

SaaS products initially were viewed as a cheaper, often inferior product to their client/server peers. Five or ten years ago, that may have been true. But today, SaaS companies generate upwards of 15% of all the software revenue and are consistently ousting their older competitors.

Most of that revenue, though, is displacement revenue. Whether it is displacing an existing CRM system or pen and paper, modern software companies still compete on the same buying parameters. For example, a CRM’s ability to be customized and its integrations characterize its attractiveness to a buyer.