5 SaaS Myths Busted - InformationWeek

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Cloud // Software as a Service
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9/24/2014
09:06 AM
Doug Henschen
Doug Henschen
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5 SaaS Myths Busted

From "SaaS promotes shadow IT" to "SaaS saves time and money," an InformationWeek survey finds that it's time to retire some old saws.

The software-as-a-service (SaaS) market has come a long way. Or has it? Some myths persist despite years of evolution in SaaS adoption and deployment patterns.

What are some of those popular myths that just won't go away? On-premises vendors have helped keep the "SaaS is for simple apps" and "SaaS is for small companies" myths alive. Then there's the SaaS-advocate claim that cloud saves time and money. Many agree, but in our InformationWeek SaaS Innovation Survey, conducted in August among 300 qualified business technology professionals, we discovered some dissenters even among SaaS users.

[Want more on this report? Read SaaS as Innovation Driver.]

Here, then, are five SaaS myths that should be put to rest.

1. SaaS promotes 'shadow IT.'
There's lots of talk about unauthorized buying of SaaS services, but apparently the problem is overstated. Among the 300 respondents to the InformationWeek SaaS Innovation Survey, 50% say they are using only IT-sanctioned SaaS services while 3% say only unsanctioned SaaS is in use. Use of "both sanctioned and unsanctioned" SaaS is reported by 16% of respondents.

2. SaaS naysayers use security as an excuse.
Whether it's perception or reality, 22% of respondents who have no plans to use SaaS agree with the statement that it's "not secure enough." But the number-one reason for not using SaaS, cited by 38% of respondents with no cloud plans, is "no business need," while 27% agree with the statement, "Internally hosted applications better meet our users' needs."

Security risks -- whether perceived or real -- aren't just "an excuse" for some, as 16% of respondents not using SaaS say they are "restricted [from using SaaS] by regulation." Many European countries, for instance, have local-data-

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Doug Henschen is Executive Editor of InformationWeek, where he covers the intersection of enterprise applications with information management, business intelligence, big data and analytics. He previously served as editor in chief of Intelligent Enterprise, editor in chief of ... View Full Bio
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D. Henschen
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D. Henschen,
User Rank: Author
9/26/2014 | 8:54:45 AM
Re: SaaS takes more time and money
Can you name names of services that have sent emails about having lost three weeks (or even one day) of data? Sounds like a SaaS service that our readers would want to avoid.
moarsauce123
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moarsauce123,
User Rank: Ninja
9/26/2014 | 7:13:13 AM
SaaS takes more time and money
I've been using several SaaS 'solutions' that in the end cost us more time and money compared to just keeping what we had or rolling our own. At least when we run the servers I am sure to have working backups...not so with some of the SaaS vendors who only send a mass email "Oops, we lost your data you added the past three weeks. We found some old tape backup that by sheer luck actually worked. If you are not the lucky one who had the data restored we recommend to start from scratch. Feel free to purchase our data entry services for the standard fee."

I admit, I'm a cloud skeptic...or our IT folks are just bad cloud service shoppers. Maybe the cheapest offer is not always the best.
Lorna Garey
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Lorna Garey,
User Rank: Author
9/24/2014 | 3:48:06 PM
Re: Unsanctioned SaaS
Right - the real benefits are good for IT, not so great for software companies used to selling the application for a large upfront cost and collecting ongoing income for maintenance. 
D. Henschen
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D. Henschen,
User Rank: Author
9/24/2014 | 12:36:04 PM
Re: Unsanctioned SaaS
The people have spoken (through our survey) and it sounds like they're not worried. Only 37 out of 300 respondents said their firms don't use and absolutely will not use SaaS. That doesn't seem to indicate there are a lot of worrywarts. I think a lot of the myths here -- like, SaaS is for simple apps and small companies and isn't secure -- are kept alive by on-premises vendors and integrators trying to keep their businesses alive by spreading FUD.  
Laurianne
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Laurianne,
User Rank: Author
9/24/2014 | 12:30:48 PM
Unsanctioned SaaS
Are people becoming more worried they will get in trouble regarding SaaS apps? I haven't heard that from people.
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