Software as a Service or SaaS (how we geeks call it) is gaining more and more ground in Corporate IT strategies and the current momentum in new web technologies also known as Web 2.0 will give it an even greater push. I have scanned the blogs of several opinion leaders in SaaS and I have summarized the key reasons for this development which I think can also be witnessed in current ePurchasing engagements.
Purchasing Managers need to go virtual
The growing virtualization is not only a technology trend, but it is also a business trend. eProcurement and eSourcing have brought Purchasing higher up on the corporate agenda but this has also caused higher expectations from the purchasing experts – more global projects, more travel and less time. Traditional systems sitting behind the firewall can no longer fulfill the needs of a modern purchasing manager. SaaS is perfectly suited for these new, virtual business requirements.
Traditional Software vendors jump on the band wagon
Just a couple of years ago SaaS was not really expected to make it into the strategies of the big traditional software vendors. The light weight business model of SaaS was regarded as a clear threat against the heavy weight behind-the-firewall strategies. Today even SAP and Oracle have entered the band wagon still struggling with the right price models but well aware of the growing importance of it.
SaaS is recession proof
Cost-control and flexibility is an important differentiating factor in times of an uncertain economic and political landscape. The adoption of SaaS on a pay-as-you-go basis will help successful companies to stay agile if investments need to be stretched.
Corporate IT departments have accepted SaaS
6 years ago one of the biggest deal blockers for on-demand eSourcing deals where the internal IT departments. We had to argue against requirements like: “We have an Oracle strategy! Do you support DB2? SQL Server is not part of our IT strategy!” They where actually afraid of SaaS, thinking it could eliminate their jobs. This has clearly changed. SaaS has become a natural part of IT strategies.
Inspired by these blogs:
- http://thinkitservices.blogspot.com/2007/12/top-ten-reasons-why-on-demand-services.html
- http://www.saastream.com/my_weblog/2007/12/saas-prediction.html
- http://blogs.zdnet.com/SAAS/?p=432
Tags: SaaS, Software as a Service, Technology
