The most popular and comprehensive Open Source ECM platform
Let us know more
SaaS: IDC Questions Cost Effectiveness of SaaS
The delivery of applications via SaaS saw exceptional growth in 2009, and many analysts expect similar growth for SaaS in 2010. A recent survey by GlassHouse found that 60 percent of CIOs already have used or are planning SaaS/Cloud Computing initiatives within the next year. Gartner estimates that 90 percent of companies that have adopted some form of SaaS are planning to expand their use of SaaS and Cloud Computing in the next year.
But Matthew McCormack, an analyst at IDC, disputes the idea that SaaS is a better deal when cost is considered.
“Cloud costs need to come down much further to be a realistic long term option,” said McCormack. “It could be useful in the short term financially for companies with severe cost overruns, but your datacenter would have to be really poorly run for it to be more expensive than the cloud in the long run”.
McCormack and IDC seem to be in a minority with this viewpoint.
Gartner has found that a major driver behind the growth of SaaS is the significant dollar savings that are possible. The Gartner survey found that executives typically cite cost-effectiveness of SaaS as the primary reason for their adoption of it. Other major drivers include ease of deployment and replacement of on-premise solutions that have not performed well.
