One of the selling points to management on software as a service (SaaS) is the assertion that it will eliminate internal support costs. A few companies I'm working with are finding that support costs don't always go away, and that's especially true for larger companies. Effective SaaS programs require more internal support than many realize. Here are three areas to consider.
In a recent blog, Nicholas Carr writes that "large companies appear to be jumping en masse onto the software-as-a-service bandwagon." He cited a McKinsey survey that found that 61% of North American companies with sales over $1 billion plan to adopt one or more SaaS apps over the next year. What's significant is that SaaS is gaining acceptance within businesses that once rejected SaaS.
With the release of Windows Vista, I'm reminded of the release of Windows 95 more than ten years ago. The hype was huge, and many felt the world would change forever. It did not. OS vendors are finding it harder and harder to make new releases compelling, but it could be different for Windows Vista when considering software as a service.
SAP, in the light of weakening demand for its software, has announced plans to expand faster into the on-demand market. "SAP AG used its fourth-quarter conference call to trickle out more details about its forthcoming mid-market product, promising a 'game-changing' offering that combines SOA technology with a new business model...
IT's Reputation: What the Data SaysInformationWeek's IT Perception Survey seeks to quantify how IT thinks it's doing versus how the business really views IT's performance in delivering services - and, more important, powering innovation. Our results suggest IT leaders should worry less about whether they're getting enough resources and more about the relationships they have with business unit peers.
What The Business Really Thinks Of IT: 3 Hard TruthsThey say perception is reality. If so, many in-house IT departments have reason to worry. InformationWeek's IT Perception Survey seeks to quantify how IT thinks it's doing versus how the business views IT's performance in delivering services - and, more important, powering innovation. The news isn't great.