Next few years could be heady time for on-demand service providers.Specifically enterprise application SaaS based platforms like CRM, ERP and business intelligence segments are showing growth above 50% for last couple of years.While majority of the growth is seen in SMB segment, its likely that it will be transformed to mid-market segment in next 4-5 years.    

While customers might not ask for on-demand solutions today, the changes caused by new delivery models and technologies will transform the on-demand enterprise solutions market.

For on-demand ERP solution providers, it very important they invest in customer education with respect to new business models, delivery models, and licensing models. In addition, investments in building partner networks to improve market coverage and implementation capacity, along with product innovations will be key drivers for growth.Specially product innovations will be very critical requirement for startups in this crowded market for differentiation. Some of the startups worth watching in financial’s and business suite space include SIONDO , Workday, Mint,Inacct