{"id":1024,"date":"2010-02-05T07:00:56","date_gmt":"2010-02-05T15:00:56","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=1024"},"modified":"2010-02-05T07:00:56","modified_gmt":"2010-02-05T15:00:56","slug":"saas-idc-questions-cost-effectiveness-of-saas","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/saas-idc-questions-cost-effectiveness-of-saas\/","title":{"rendered":"SaaS: IDC Questions Cost Effectiveness of SaaS"},"content":{"rendered":"

The delivery of applications via SaaS saw exceptional growth in 2009, and many analysts expect similar growth for SaaS in 2010. A recent survey<\/a> by GlassHouse found that 60 percent of CIOs already have used or are planning SaaS\/Cloud Computing initiatives within the next year.\u00a0 Gartner estimates <\/a>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.
\nBut Matthew McCormack, an analyst at IDC, disputes the idea that SaaS is a better deal when cost is considered.
\n“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”.<\/p>\n

McCormack and IDC seem to be in a minority with this viewpoint.
\nGartner has found that a major driver behind the growth of SaaS is the significant dollar savings that are possible.\u00a0 The Gartner survey found that executives typically cite cost-effectiveness of SaaS as the primary reason for their adoption of it.\u00a0 Other major drivers include ease of deployment and replacement of on-premise solutions that have not performed well.<\/p>\n

<\/p>\n
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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…<\/span><\/p>\n

Read more ›<\/a><\/div>\n

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