{"id":196,"date":"2007-01-31T14:23:54","date_gmt":"2007-01-31T22:23:54","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=196"},"modified":"2007-01-31T14:23:54","modified_gmt":"2007-01-31T22:23:54","slug":"saas-growth-but-not-problem-free","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/saas-growth-but-not-problem-free\/","title":{"rendered":"SaaS: Growth, but not Problem Free"},"content":{"rendered":"<p><a title=\"Cutter Consortium\" href=\"http:\/\/www.cutter.com\" target=\"_blank\">Cutter Consortium<\/a> has <a title=\"Cutter SaaS Report\" href=\"http:\/\/www.cutter.com\/press\/070122.html\" target=\"_blank\">released<\/a> a report by <a title=\"Jeffrey Kaplan\" href=\"http:\/\/www.cutter.com\/meet-our-experts\/kaplanj.html\" target=\"_blank\">Jeffrey Kaplan<\/a> titled <em>Software-as-a-Service on the Rise<\/em>.\u00a0 The analysis\u00a0says that their survey gives &#8220;proof&#8221; that the &#8220;interest and adoption of on-demand software solutions is accelerating&#8221; and\u00a0that &#8220;a third of organizations are already using SaaS solutions and an equal portion are considering SaaS.&#8221;<\/p>\n<p>The numbers from the survey do show a jump in interest in SaaS from 34% to 43%, but the number of SaaS users actually hasn&#8217;t changed between 2005 and 2006.\u00a0 One might have expected that, given the overall upward trend of SaaS, the percentage of real SaaS adoptors would have increased over the last year.\u00a0 That&#8217;s a little surprising.\u00a0 It looks like conversion of tire-kickers into adoptors will be the challenge for 2007.<\/p>\n<p><img decoding=\"async\" id=\"image194\" alt=\"SaaS Penetration\" src=\"http:\/\/formtek.com\/blog\/wp-content\/uploads\/2007\/01\/saaspentration.gif\" \/><\/p>\n<p>The report also concludes that ROI and cost-effectiveness is the main driver for why companies are moving towards the SaaS model.<\/p>\n<p><img decoding=\"async\" id=\"image195\" alt=\"SaaS Adoption Reasons\" src=\"http:\/\/formtek.com\/blog\/wp-content\/uploads\/2007\/01\/SaaSAdoptionReasons.gif\" \/><\/p>\n<p>Kaplan also <a title=\"Satisfaction Levels dropping\" href=\"http:\/\/www.computerworld.com\/action\/article.do?command=viewArticleBasic&#038;articleId=9009121&#038;source=rss_topic87\" target=\"_blank\">noted<\/a> that statisfaction rates of SaaS users slipped from 90% last year to 80% this year.\u00a0 Kaplan says a drop like that is natural during the early going for any new technology and he attributes\u00a0it to unrealistic expectations from users of SaaS.\u00a0 Like any software product users need to do their homework and thoroughly evaluate vendor capabilities before making a selection.<\/p>\n<p>Kaplan gives SaaS high marks for reliability and functionality, but in the area of cost savings, the top reason wny SaaS is attracting attention, it hasn&#8217;t matched people&#8217;s expectations.\u00a0 Startup costs\u00a0related to\u00a0integration and data migration often made the move to SaaS more expensive than expected.<\/p>\n<p>SaaS has a lot of positives, but like any technology, it is often hard for reality to live up the hype.<!--44b3326468c4f5f91ac2156748eee7e4--><!--ddca7c1e28bbc371c19eca688fec6b2f--><\/p>\n<div class=\"lightsocial_container\"><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/digg.com\/submit?url=https%3A%2F%2Fformtek.com%2Fblog%2Fsaas-growth-but-not-problem-free%2F&amp;title=\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/digg.png\" alt=\"Digg This\" title=\"Digg This\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/www.reddit.com\/submit?url=https%3A%2F%2Fformtek.com%2Fblog%2Fsaas-growth-but-not-problem-free%2F&amp;title=\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" 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