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SaaS in the Post-Crash Era: Industry Data Indicate IT Issues Top of Mind
Saugatuck Technology, March 2009, Pages: 5
At the end of 2008, we conducted an extensive global SaaS survey in order to gauge the impact of the economic crisis on buyers’ attitudes toward SaaS. In the aftermath of the financial meltdown, the survey data provide clear evidence that demand for cloud-based solutions continues to remain strong. Two survey questions in particular address how organizations consider SaaS in relation to key business goals and expected business value from those SaaS solutions.
-In terms of business goals: “Sales/Revenue Growth” and “Reach New Customers” are the top two business goals across industry groups with “Increase Profit Margins”, “Managing Budgets” and “Decrease Operational Expenses” close behind in the top five. The biggest relative change came at the bottom of the list, with dramatic lowering of priorities as it concerns “Entering New Markets” and “Change the Organization’s Business Model.”
-In terms of expected benefits: “Capital and Operating Cost Reduction” is the leading business benefit expected from SaaS as a whole, followed closely by “Simplify Software Management” and “Improve Service Levels.” The lowest-ranked expected benefits are “Access Next-generation Application Functionality” and “Leverage SaaS Provider’s Leading-edge Technology.”
Is there a direct linkage between expected benefits from these solutions and the business goals that drive enterprises? The need for top-line growth drives the top two business goals across most industry groups with costs and profitability close behind. Yet, among expected SaaS benefits, increasing revenue falls well back into the lower half of favored responses.
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