IT DRILLDOWN
 
NEWSLETTERS
 

CIO.com updates, insights and advice on technology, management and your career.

 
 
 
LEADERSHIP
 
CIO Executive Programs
The Leader in Face-to-Face Education for Senior Executives

Offering regional and national programs, CIO (and CSO) events bring together some of the most respected names and thought leaders in information technology and security. Presented by CIOs and other senior level executives, these invitation-only programs offer timely topics and strong networking. Learn More »

 
CIO Executive Council
A Peer-Advisory Service and Professional Association for CIOs

Social Responsibility's Strategic Benefits

December 15, 11:30 AM - 12:30 PM US/Eastern (GMT-5)

Join Ed Granger-Happ, CIO of Save the Children, for a discussion of how creating an organization that is socially responsible improves staffing, retention, leadership development and overall corporate health.

Working With and Communicating to Your Board of Directors

January 13, 2009, 4:00 PM - 5:00 PM US/Eastern (GMT-5)

CIO panelists who will share tips and experiences working with their boards: Twila Day of SYSCO; Jeff O'Hare, West Corp.; Marc West, formerly with H&R Block.

IT's Role in Growing Mid-Market Companies

January 14, 4:00 PM - 5:00 PM ET (GMT-5)

Mid-market Council members will share their companies' stories and challenges in driving or coping with growth. Panelists represent Veterinary Pet Insurance, Medicis Pharmaceutical, and Intrax Cultural Exchange.

More / Register »

Learn more about the CIO Executive Council »



 
 
RESOURCE CENTER
 
 
 
SUBSCRIBE TO CIO
 
Are you involved in setting the direction for your company's IT budget or strategy?

Apply today for a FREE subscription to CIO Magazine!

 
 
 

Eight Reasons Why Companies Still Say 'No' to SaaS

Amid growing SaaS hype, many enterprises have discovered sound reasons to ignore software-as-a-service. Here are the top eight, according to Forrester Research.

 

June 05, 2008CIO — The enthusiasm for and growth in the software-as-a-service (SaaS) market cannot be discounted. SaaS has become a viable and cost-effective (initially, at least) means of application delivery for the small, midsize and even large businesses.

A sampling of recent CIO headlines and article themes tells the tale: "Enterprises Adopt SaaS Aggressively"; "CIOs Embrace On-Demand Software. Really, They Do."; "SaaS CRM has gone mainstream"; and "On-Demand Software: SaaS Appeal."

And yet, according to Forrester Research survey data, not everyone has jumped on board the SaaS Train. (If you want a "cold SaaS shower," see "The Truth About Software as a Service.")

A late 2007 survey of North American and European software IT decision-makers found that just 16 percent of respondents said they were already using or currently piloting SaaS applications. Conversely, more than 80 percent were still on the sidelines—curious, for sure, but not yet completely sold or running SaaS apps right now. (Forty-six percent said they were interested in SaaS or planning to pilot; 37 percent said they were "not at all interested.")

So what's the holdup? "The SaaS market is still shaking out, marked by an abundance of startups, acquisitions and even some early examples of companies having to shut their doors," write Forrester analysts Liz Herbert and Bill Martorelli in the April 2008 "SaaS Clients Face Growing Complexity" report. "Many firms are hesitant to invest in SaaS, particularly if there is no on-premise option to migrate to or other clear exit strategy." (See the top eight reasons, below.)

Why North American Enterprises Aren't Interested in SaaS

According to a Forrester Research survey, these are the top eight reasons why companies say "No Thanks" to SaaS.

Percent Reason
66% Integration issues
61% Total cost of ownership concerns
55% Lack of customization
50% Security concerns
42% "We can't find the specific application we need"
39% Complicated pricing models
39% Application performance
34% "We're locked in with our current vendor"
(Note: Multiple responses accepted)

Other stories by Thomas Wailgum © 2008 CXO Media Inc.
Loading...
 
 
ABCs
 

Just the basics, please. Sometimes we all need a refresher or we need to make sure our team and our colleagues are all on the same page.

Over 25 tutorials on everything from business intelligence to virtualization.

 
 
FEATURED SPONSORS
 
 
 
SPONSORED LINKS
 

Learn how the new Quad-Core AMD Opteron™ processor improves performance

Determine the ROI of Web Application Acceleration Managed Services

Achieve a 50:1 Data Deduplication Ratio

State of the Market: Application Performance Management

Proactively Identify and Resolve Performance Issues

Union Bank of California Improves its Online Banking Services

The Link Between APM and Customer Satisfaction

Providing Around-the-Clock Customer Satisfaction

Revolutionizing Endpoint Security with a Single Agent

White Paper: Learn how wide-area data services accelerate applications

Effective Security with a Continuous Approach to ISO 27001 Compliance

Optimizing Infrastructure Control

Configuration Assessment: Choosing the Right Solution

Gap Analysis: The Case for Data Services

Learn how Technology Escrow provides access to critical application source code

Information Security: Data Drains and How to Prevent Loss

Best Practices in Choosing and Consuming Managed Security Services

A Guide to Messaging Archiving

2008 Google Communications Intelligence Report

The Impact of Messaging and Web Threats

Comparing Google and Other Leading Messaging Security Solutions

Mission Impossible: Building the Right Project Metrics

"Enterprise-Proven" is the Prerequisite for Enterprise SaaS Portal Solutions

A New Model of Business Intelligence

Forrester Total Economic Impact (TEI) report: Save Millions in Fraud Losses.

Improve Web-Enabled SAP Performance

Gartner on Data Deduplication Cost Savings

Data Protection Options Explained

Effectively Managing High-Performing, Business-Critical Web Applications

Managing Service Level Agreements to Achieve Business Goals

APM Solutions: A Window into Complex Web Applications

APM Solutions Offer Insight into Complex Web Applications

Check Point Endpoint Security - Unifying Essential Components

Data Protection: Challenges for the Traveling User

Optimizing Infrastructure Control

File Integrity Monitoring: Secure Your Virtual and Physical IT Environments

Effective Security with a Continuous Approach to ISO 27001 Compliance

Explore the value of bringing better BI to business users through dashboards.

The ECM Paradox: Extending Local Flexibility to Strengthen Central Control

Grassroots Data Governance with SAP MDM

Data Loss Prevention: Keeping Sensitive Data Out of the Wrong Hands

A Guide to Understanding Hosted and Managed Messaging

Google Apps Premier Edition Helps Indoff Manage E-mail More Effectively

CapGemini Cut Call Center Costs with Google Apps Premier Edition

Comprehensive Review of Security and Vulnerability Protections for Google Apps

Web 2.0 The New Face of the Web

Information Agenda - An innovative approach to transforming business information

Live Webcast - Ensuring Business Services Delivery

The Case for Business Software Assurance ~ Securing Your Applications

Efficient by design: Watch this flash demo of the Quad-Core AMD Opteron Processor