Philippines to emerge as a major SaaS hub

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“By 2010, over 30 percent of global software revenue will be driven by SaaS (software as a service) enterprise applications,” according to Winston Damarillo, executive chairman of Morph Labs, Inc., “
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Philippines, Republic of the (Press Release) May 2, 2008 -- “By 2010, over 30 percent of global software revenue will be driven by SaaS (software as a service) enterprise applications,” according to Winston Damarillo, executive chairman of Morph Labs, Inc., “and the Philippines will emerge as a major SaaS innovation hub for the industry,” with many developers using tools and services provided by Morph Labs for rapid, cost-effect development of SaaS applications.

Morph Labs is a Philippine-based SaaS product and service developer and a leading enabler of SaaS web application development by third-party independent software vendors (ISVs). Its Morph AppSpace service, the first Platform as a Service (PaaS) for Ruby on Rails — a popular open source programming framework — allows developers to quickly deploy applications into an enterprise quality on-demand environment.

A recent Gartner Research reports supports Damarillo’s projection. According to Gartner, one third of spending on business application software will be through subscriptions by 2010, up from just five percent in 2005. Gartner also projects that 84 percent of small and mid-size
companies and 69 percent of large companies are willing to consider, are currently reviewing or are already using SaaS applications.

Damarillo believes the Philippines will become an important supplier of SaaS applications
globally, and his company is providing products and services to help ISVs develop their own SaaS applications. “Morph Labs enables ISVs and entrepreneurs to enter the global SaaS marketplace and compete without making huge investments in technology capabilities,” said David Abramowski, chief executive of Morph Labs.

“And with the Internet as the distribution channel, there is plenty of opportunity for grassroots marketing that’s only provided in the Web 2.0 world. Our tools and Internet distribution present great opportunity for Philippine startups,” he said. “Given the Philippines’ capabilities and global reputation for software development, we are confident that this country will be among the major hubs of the global SaaS industry,” Abramowski said.

Damarillo said that cost benefits are the most obvious advantage of SaaS applications over traditional software, but that this end user advantage puts tremendous pressure on SaaS developers. “The challenge for a technology innovator is overcoming the time and cost to establish a reliable technology platform to deploy, deliver and manage new business applications,” said Damarillo. “By reducing the cost of infrastructure and making it more affordable for ISVs, Morph Labs is enabling an increase in global supply of SaaS applications.

“And that increase in supply means more options for clients and end users, which generates increased demand as SaaS applications become mainstream,” he said.
“Our vision is to simplify innovation.” Abramowski said. “Morph Labs will continue to introduce applications and services that will help entrepreneurs and ISVs in streamlining development and deployment.”

Morph Labs itself provides a suite of software applications called Morph AppSuite that can be used by ISVs to build applications, or directly by end users. SaaS applications developed or under development at Morph Labs include human resources management, expense management, and customer relationship management solutions. Since launching services in January this year, Morph Labs has signed up nearly 300 Morph AppSpace subscribers.

A service used by third-party developers for the development of help and training sites, Morph helpME, is being leveraged for the development of over 200 sites. An online community for developers and their clients, Morph eXchange — through which subscribers access Morph AppSpace — has nearly 1,000 direct subscribers who regularly access both free and for-fee SaaS subscriptions, he said.

Damarillo is often referred to as a successful serial technology entrepreneur, having founded a number of internationally successful startups. He is also managing director of Global Gateway Venture Capital, which funds global-facing Asian start-ups. His career as a venture capitalist began with Intel Capital, where he was one of the top performing professionals.

About Morph Labs

Morph Labs (http://www.mor.ph) is the leading enabler of Software as a Service (SaaS) that leverages virtual infrastructure and open source technologies to simplify the deployment, delivery, and management of web based applications.

Morph Labs uses virtual infrastructures including Amazon Web Services to provide a truly elastic environment for web applications that can be instantly provisioned and seamlessly scaled.

Morph Labs is a global company with headquarters in Cebu City, Philippines with additional in-country operations in Manila along with Los Angeles, California and Austin, Texas in the U.S.A.


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