{"id":187,"date":"2007-01-25T14:57:32","date_gmt":"2007-01-25T22:57:32","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=187"},"modified":"2007-01-25T14:57:32","modified_gmt":"2007-01-25T22:57:32","slug":"saas-lack-of-it-innovation-leading-to-crisis","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/saas-lack-of-it-innovation-leading-to-crisis\/","title":{"rendered":"SaaS: Lack of IT Innovation Leading to Crisis?"},"content":{"rendered":"

Dave Girouard<\/a>, Google’s general manager of enterprise business, warns<\/a> of a crisis in IT.\u00a0 The “insane complexity” of technology causes many companies to spend 75-80% of their IT dollars maintaining existing systems.<\/p>\n

The solution to budget-busting never-ending maintenance projects says Girouard is SaaS (software as a service).\u00a0 But there is still much aprehension towards SaaS that centers around security.\u00a0 Girouard argues that “information security, as critical as it is, needs to be taken care of by organizations who live and die by it, who invest the time, money, resources and staff.”\u00a0<\/p>\n

Google\u00a0says that they want\u00a0other companies to share in the on-line innovations that Google has came up with over the last\u00a0eight years to help them grow into a $10 Billion company.\u00a0 Core to their current enterprise application strategy is “Google Apps<\/a>“, a bundle that includes email, IM, a calendar and Web page design program.\u00a0 Google Apps\u00a0is free for organizations with 25 or less people.<\/p>\n

While convenience and freedom from IT infrastructure issues\u00a0is a clear advantage of next generation Web 2.0 apps, SaaS providers like Google will need to go much much further before attracting medium and large businesses.\u00a0 One issue is that while the feature set of on-line tools is impressive and is improving on almost a daily basis,\u00a0the experience and feature set\u00a0still doesn’t match that of a thick client.\u00a0 And companies have major concerns about security, service-level agreements and training.<\/p>\n

But that will change.\u00a0 And for some customers, the advantages of a SaaS model are already compelling.\u00a0 An interesting statistic<\/a> is that IBM has 46,000 Lotus Notes Users, but the Economist, again quoting Girouard, says<\/a> that tens of thousands of companies have already signed up for Google Apps — over a period of about five months.<\/p>\n

One example<\/a> is Arizona State Univeristy,\u00a0last year\u00a065,000 students switched the school’s email system to be powered by Google’s Apps for Education.\u00a0 These kinds of projects build mind share and momentum.\u00a0 SaaS and solutions like Google Apps are sure to continue to grow in popularity.\u00a0 And with powerful backers like Google of the SaaS delivery model, greater acceptance of SaaS should follow.<\/p>\n

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Dave Girouard, Google’s general manager of enterprise business, warns of a crisis in IT.\u00a0 The “insane complexity” of technology causes many companies to spend 75-80% of their IT dollars maintaining existing systems. The solution to budget-busting never-ending maintenance projects says…<\/span><\/p>\n

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