Over the past couple of years the amount of attention over Software as a Service has grown considerably and with it, that adoption of cloud computing organizationally has grown with it. Why?
There are several factors, not the least of which is because SaaS has bridged the gap between enterprise and small and medium business applications. Solutions that were once only viable for large enterprises due to cost, infrastructure requirements and overall adoption are now available to the smaller folks, helping to expand the availability and thus market reach of these applications. In fact, as Larry Marion of Datamation points out, BusinessWeek Research Services recently conducted a survey that found that four of five managers and senior executives in North America are interested in or currently in the process of adopting the SaaS model – and roughly a third of all respondents have already adopted it in one form or another within their organizations.
As Marion indicates, it’s important to note that there is a distinct difference in the level of interest in SaaS depending on who you ask. Those executives at medium-size organizations are adopting SaaS for vital applications while those at enterprise companies really are more targeting SaaS for their second-tier applications.
But the point is, cloud computing continues to grow in popularity. Even for larget enterprises, they can leverage SaaS to augment their existing applications rather than making the full investment of standard on-premise solutions. At the end of the day, SaaS provides the flexibility for any company to utilize primary or secondary applications at a fraction of the price. And that’s what it’s all about – reducing costs. In the BusinessWeek survey, when asked what the three most important factors of SaaS were, the need to reduce capital and operating costs were far and away the most popular answer. And in this economy, who can blame them?
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