A Gartner s survey has revealed that nearly 90% of organizations surveyed expect to maintain or grow their usage of software as a service (SaaS). The primary reason being SaaS is cost-effective and ease to deploy.
This survey was conducted across eight countries between June and July 2008 with 258 respondents of organizations that were either using SaaS, or planned to do so in the next 12 months. More than one-third of respondents indicated plans to transition from on-premises solutions to SaaS due to high total cost of ownership (TCO), and unmet performance expectations with on-premises solutions. In addition, replacement of on-premises solutions and net-new implementations were cited as major the major reasons of future deployments.
Use of SaaS has been evolving during the past decade and it is becoming increasingly popular. The survey indicated that more than 40 percent of organizations have used SaaS for more than three years, implying a growing fluency with the model within the end-user base, as users demand higher levels of functionality.
Gartner s survey also found that 37 percent of respondents were transitioning from a current on-premises solution to a SaaS solution. This drive is particularly significant in Asia/Pacific where 50 percent of respondents indicated that they were shifting away from on-premises and India indicated a 70 percent conversion. A majority of respondents cited the major reason for this transition was that the TCO for on-premises solution was becoming too expensive.
Despite the increase in usage of SaaS, most respondents to Gartner s survey indicated that no policies had been instituted to govern the evaluation and use of SaaS. Only 38 percent of total respondents that are currently using SaaS have a process or policy that guides the evaluation, procurement and deployment of SaaS. The majority of these organizations are based in Europe and North America. While another 30 percent indicated plans to develop these policies and or processes, another 26 percent have no plans at all to address this issue.
Also Read:
SaaS is Here to Stay
SaaS Market to Skyrocket by 2012
SaaS Most Popular among Low-Mid Sized SMBs
SaaS lowers TCO for SMBs
|
In continuation to Part 2 of this series "How to Take Your Biz Online and Beyond", Abhishek M. Gupta, VP (Technology) of Lime Spot Technology, in Part 3, discusses how to increase traffic by by "affiliate marketing". Read on...
del.icio.us
Digg.com
MyWeb
Newsvine.com
