by Rakesh Sharma
Published on 10 May 2011
This one should be interesting!
Research firm Forrester surveyed 1000 IT decision-makers from North American and European enterprise companies with 1000 or more employees to determine their SaaS habits. More specifically, the research firm surveyed them to find out how SaaS is being used and their impression of benefits and drawbacks about the service. The report, titled " The SaaS Market Hits Mainstream: Adoption Highlights 2011″ is available on their website.
Here are some interesting nuggets from the report:
Similarly, SaaS is also used for processes such as sales automation, customer support, and recruiting. By itself, this nugget may not mean much. However, I think it might be interesting to note that SaaS usage is highest in cross-functional areas. For example, CRM integrates multiple areas of business such as sales and support to produce a coherent customer strategy. This ties in with one of the major perceived benefits of SaaS: moving beyond silo-centric operations to an integrated value chain.
Of course, the move makes sense when you consider that information and workforces are rapidly being distributed across geographies and time zones. However, as I had noted in an earlier post about productivity, large scale adoption of paid productivity applications is yet to happen. Remember, this survey was conducted for enterprises with 1000 or more employees. For a firm that size, scaling from a free version of Google Apps to a resource intensive (and comparatively expensive) productivity application such as IBM Lotus Notes should not be a problem.
48 percent also anticipated long term cost savings. These would mostly include elements such as reduced hardware costs, elimination of support fees and resources needed to maintain the application. Cost reduction, obviously, is a strong motivator to shift to SaaS. Tellingly, however, higher level of user and customer satisfaction and an iterative deployment model rank pretty low as reasons to move to SaaS. And, we thought business was all about customer satisfaction!
The report makes three recommendations to SaaS customers.