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SaaS: Hybrid SaaS Solutions for Small and Medium Sized Businesses
The use of SaaS is growing rapidly across all business segments. A report from AMI-Partners (Access Markets International Partners) shows that small and medium-sized businesses are increasingly moving to SaaS, but the move so far has been incremental with most companies adopting SaaS on an application-by-application basis. This has resulted in a blended approach to computing where the businesses run both SaaS and on-premise applications.
The AMI report found that 12 percent of small businesses, which translates to about 750,000, are currently using SaaS. Among medium sized business the percentage is higher, at 24 percent or nearly a quarter, but with fewer total medium sized business, that translates to about 20,000 businesses. Of those businesses that are using SaaS, 78 percent of small businesses use a hybrid combination of SaaS plus on-premise computing, while only 31 percent of medium-sized businesses do. The hybrid migration approach offered by traditional vendors like Microsoft, IBM and SAP appeals to many of these customers, offered by a vendor from whom they trust and with a migration path that isn’t a major change for users from how their current software works.
About half of SMBs are considering the use of SaaS as a means to reduce costs and to offload infrastructure complexities. Much of the interest is being driven by the the cost pressures resulting from the poor economy. 77 percent of small businesses and 88 percent of medium-sized businesses continue to be worried about the current economic climate.
One of the first applications that companies choose to host via SaaS is email. SMBs are also interested in hosted storage and backup solutions, and many are also considering to adopt SaaS-based document management and collaboration software.
