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Enterprise Software: Recession Puts Pressure on Vendors

By Dick Weisinger

With 81 percent of enterprises looking for a way to cut IT costs, many software vendors are feeling as if they are under siege from their customers.  But things may not be too bad based on a survey from Forrester.

  • 64 percent of enterprises want to upgrade their legacy applications.
  • Organizations are kicking the tires of SaaS technology, but the timing is still a bit premature.  Many companies are still worried about SaaS security, overall cost, and integration issues.  Somewhat out of line with other surveys, of the 2200 IT executives in  Europe and the US, only 2 percent said that they are investigating SaaS.
  • Organizations are also a bit apprehensive about Open Source, with 58 percent of companies saying that they have security concerns about it.  And almost the same number have concerns about support and service.
  • The uptake of Web 2.0 technologies in the enterprise is still very small.

The good news for vendors is that about a third of companies are in the market for new software, and the surprise is that Open Source and SaaS don’t appear to be strong motivators in influencing the purchase decision.

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