Most outlooks for software-as-a-service are pretty rosy, including Gartner’s forecast that SaaS applications will see annual growth of 22 percent through 2011, vs. annual growth of 9 percent for the overall software market. Êý¾ÝÍÚ¾ò½»ÓÑ
Still, not everyone plans to buy SaaS. A CIO.com article offers eight reasons why some companies are still balking, drawn from a Forrester Research report. According to Forrester, just 16 percent of respondents are using or testing SaaS applications. Forty-six percent of respondents expressed interest in SaaS, but 37 percent said they were “not at all interested.” Êý¾ÝÍÚ¾òÂÛ̳
The single biggest issue, mentioned by 66 percent of SaaS-phobic companies, is integration. Yeah, there are some integration issues with SaaS, wrote IT Business Edge blogger Loraine Lawson in February. Yet they may not present as big a hurdle as some folks think. Lawson followed up in April with a post about a company that found that integrating SaaS with its existing applications was no big deal. Êý¾ÝÍÚ¾ò½»ÓÑ
Sixty-one percent of the Forrester respondents mentioned total cost of ownership. That’s a legitimate concern. As I wrote last month, experts such as IBM’s David Lashar say SaaS becomes more expensive than on-premise software over time, typically within five to seven years. Companies might end up sacrificing even more, adds Lashar, due to lost opportunities that can result from SaaS’ limited functionality. Êý¾ÝÍÚ¾òÑо¿Ôº
Of course, cost isn’t everything. As I wrote back in November, citing Yankee Group research, SaaS users cited improved application quality and performance and faster time to value as