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SaaS: Two Steps Forward and One Step Back
We’ve seen that, except for concerns around security, SaaS continually intrigues many organizations and is seeing exceptionally rapid acceptance and adoption. A report based on a survey taken by Bloomberg Businessweek Research Services though shows some signs that organizations may be running into issues with SaaS.
Two surveys were taken, one in August 2009 and another in 2010. Somewhat surprisingly, the report found that there was actually a decline in the number of mid-sized companies ($50 million to $1 billion in annual revenues) that had at least one critical application deployed via SaaS. In 2009, the survey found that was true for 14 percent of organizations, but in 2010, the number has dropped to 8 percent. Similarly, for large companies (greater than $1 billion in annual revenues), the percentages dropped from 8 percent in 2009 to 5 percent in 2010.
The report attributes the declines in the numbers to growing pains associated with adoption of new technologies,. Organizations may have withdrawn their SaaS initiatives and gone back to their previous on-premise applications after running into issues. The report suggests that this type of flip in the numbers is common with the adoption of many new technologies. Many organizations may have jumped too quickly into using SaaS for critical applications before they had built up enough experience with the technology. In fact, the number of organizations that are using SaaS for non-critical applications increased from 7 percent to 12 percent.
