Survey: why companies still shun SaaS

June 6th, 2008 Tags: ,
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Computerworld has an interesting article titled Survey attempts to answer why companies still shun SaaS. (I believe it’s originally from CIO.com.)

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.”)

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

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)

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