Is The Recession Good For SaaS? - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

02:13 PM
Connect Directly

Is The Recession Good For SaaS?

I heard opposing voices at Interop about whether the bad economy will drive companies to software as a service.

I heard opposing voices at Interop about whether the bad economy will drive companies to software as a service.IT budgets can be precarious in the best of times, and the current economic recession will affect IT's ability to spend. (It's certainly not going to help IT salaries).

While unwelcome, budget restrictions also can be an opportunity for IT to be creative and try new things. At an Interop panel discussion, Philip Winslow, VP and software analyst at Credit Suisse, pointed to SaaS as one option.

As IT is tasked to do more with less, that's an opportunity for SaaS to get a foot in the door. Winslow says Credit Suisse is asking itself "Does our IT shop really need to be in the business of running Exchange?" E-mail isn't a core business of the company, and can be provisioned and managed by a third party.

SaaS is certainly attractive from a capital perspective. As our TCO analysis of a CRM deployment shows, SaaS wins when it comes to saving money on deployment.

But economic bad news also may make IT shops more cautious. That was the opinion of Mike Braun, founder and CEO of Intacct, a SaaS-based provider of financial and accounting apps. In his experience, when times are tight, it's harder to convince customers to move away from their existing apps, even if those apps are causing them pain.

I'd like our readers to chime in. When the financial waters get rough, are you more or less willing to hop into a SaaS boat?

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
10 Cyberattacks on the Rise During the Pandemic
Cynthia Harvey, Freelance Journalist, InformationWeek,  6/24/2020
IT Trade Shows Go Virtual: Your 2020 List of Events
Jessica Davis, Senior Editor, Enterprise Apps,  5/29/2020
Study: Cloud Migration Gaining Momentum
John Edwards, Technology Journalist & Author,  6/22/2020
Register for InformationWeek Newsletters
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll