January 09, 2013
Software-as- a-Service from the Enterprise Viewpoint
By Michelle Amodio TMCnet Contributor
When it comes to Web services, Software as a Service (SaaS (News - Alert)) is becoming more and more ubiquitous as a delivery model. A SaaS model is easier to administer, is compatible across the board since users will all have the same version of a certain piece of software, it’s easier to collaborate with and it’s accessible anytime, anywhere. SaaS also gives companies an alternative to building and maintaining their own IT setup, so its lower startup costs make it attractive for businesses.
From the enterprise viewpoint, according to Microsoft’s MSDN library, the biggest influence is that SaaS provides the right motivations for steering IT towards a service-centric model.
“The business benefits of a well-designed composite application are many and include reduced redundant data entry, better human collaboration, heightened awareness of outstanding tasks and their statuses, and improved visibility of interrelated business information,” the article states.
Customers are reinventing how they choose to learn about new products, keep current on existing ones, and stay loyal to those brands they most value. For the enterprise, tighter budgets combined with leaner alternatives have led market intelligence experts to agree that, overall, SaaS will experience growth over the next few years.
Gartner (News - Alert) anticipated earlier this year that the worldwide spending on enterprise software will total $120.4 billion in 2012, a 4.5 percent increase from 2011 spending of $115.2 billion.
The enterprise market has been conflicting at best, as the economic reports have all contrasted greatly with each other mostly due to economic uncertainty, but the market remains hopeful for growth.
"Spending in 2012 is anticipated to focus on industry-specific applications; upgrades to established, mission-critical software; integrating and securing established systems and infrastructure; and software as a service (SaaS) deployments representing extensions to, or replacement of, existing applications and new solutions,” said Tom Eid, research vice president at Gartner, in a statement on a report about enterprise application spending.
SaaS is popular for the enterprise because it makes deployment easier. With SaaS, developers can support many customers with a single version of a product, allowing the enterprise to scale as fast and as much as needed without replacing costly infrastructure or adding to the IT staff budget.
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Edited by Rich Steeves