By R "Ray" Wang on January 25, 2010
Gains In SaaS Adoption Driven By Speed And Cost Savings
Preliminary data from Q4 earnings data show continued traction among SaaS solutions. Expect SaaS deployments to gain steam in 2010 as organizations finalize their SaaS apps strategies to take advantage of 7 key benefits:
- Richer user experience – SaaS apps bring Web 2.0 usability to the enterprise world through rich internet applications using Adobe Air, HTML 5, Microsoft Silverlight, and other tools.
- Rapid implementation – SaaS applications focus on configuration and integration, not hard core implementation. Users can be up in weeks, not months.
- Frequent cycles of innovation – At present, most vendors introduce new functionality, enhancements, and bug fixes on frequent refresh cycles. Some vendors provide as frequent as weekly updates, others – seasonal.
- Minimal upgrade hassles – Users focus on minimal testing scenarios and receive updates all at once. In applications with significant regulatory and tax updates, SaaS applications reduce the cost of compliance by as much as 77%.
- Always on deployment – Organizations can expect average up-time levels at 99.95% or higher for most applications. These results often exceed existing on-premise performance.
- Subscription pricing – Subscription pricing reduces the capital burden of common on-premise payment models.
- Scalability – Organizations can add or subtract users as needed without worrying about procuring new hardware and other infrastructure.
Moreover, latest Information Week Analytics survey reaffirms several key benefits of SaaS adoption – time to market and cost savings (see Figure 1).
Figure 1. Information Week Analytics Survey Confirms Trends In Adoption
Yet, Aggregated Information Provides The Real Value To Clients
Despite the obvious benefits with SaaS deployments, three hidden advantages will emerge with market maturity:
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Posted in Business, Featured Posts, Technology / Software | Tagged Adobe Air, Apps Strategy, benchmark performance, benchmarking, bill of rights, business impact, contract negotiations, contract strategy, cost reduction, CRM, customer bill of rights, enterprise applications, enterprise apps, Enterprise apps strategy, Enterprise Business Apps, Enterprise Business Apps Vendors, enterprise software, HTML 5, implementation, information broker, Information On Demand, Information Week, innovation, Microsoft Silverlight, prediction, rapid implementation, SaaS, SaaS Bill of Rights, SaaS offensive, SaaS strategies, scalability, software as a service, software bill of rights, software contract reviews, software escrow, software licensing, software licesing and pricing, Software Vendors, strategy, subscription pricing, trending, upgrade, usability, User Experience, ux, vendor strategy
Biography
Speaker's Short Bio
R "Ray" Wang is the Principal Analyst, Founder, and Chairman of Silicon Valley based Constellation Research, Inc. He's also the author of the popular business strategy and technology blog
"A Software Insider’s Point of View". With viewership in the 10's of millions of page views a year, his blog provides insight into how disruptive technologies and new business models such as digital transformation impact brands, enterprises, and organizations. Wang has held executive roles in product, marketing, strategy, and consulting at companies such as Forrester Research, Oracle, PeopleSoft, Deloitte, Ernst & Young, and Johns Hopkins Hospital.
His new best selling book
Disrupting Digital Business, published by Harvard Business Review Press and globally available in Spring of 2015, provides insights on why 52% of the Fortune 500 have been merged, acquired, gone bankrupt, or fallen off the list since 2000. In fact, this impact of digital disruption is real. However, it’s not the technologies that drive this change. It’s a shift in how new business models are created.
Wang has held executive roles in product, marketing, strategy, and consulting at companies such as Forrester Research, Oracle, PeopleSoft, Deloitte, Ernst & Young, Personify, and Johns Hopkins Hospital. He is a prominent and dynamic keynote speaker and research analyst working with clients on digital, innovation, business model design, engagement strategies, customer experience, matrix commerce, and big data.
His Silicon Valley research firm, Constellation Research, Inc., advises Global 2000 companies on the future, business strategy, and disruptive technology adoption. Ray is a regular contributor to Harvard Business Review and well quoted in The Wall Street Journal, Forbes, Bloomberg, CNBC TV, Reuters, IDG News Service, and other global media outlets. Wang has thrice won the prestigious
Institute of Industry Analyst Relations (IIAR) Analyst of the Year Award
