As Software-as-a-Service Gains Market Share, Buyers Must Follow Best Practices in Evaluating and Contracting with SaaS Providers

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The SaaS model of application deployment is picking up momentum with organizations of all sizes and in all regions of the world. Among other benefits, customers appreciate being able to deploy SaaS applications quickly, without having to invest in IT infrastructure or rely on their internal IT organizations. At the same time, SaaS providers are addressing concerns of buyers, such as security and privacy. As customers experience the outstanding economic characteristics of SaaS, we expect adoption rates to increase further. But to gain all the benefits, buyers must understand the differences between SaaS and on-premises systems and follow best practices in evaluating and contracting with SaaS providers.

Purpose & Intent: 

Based on the Computer Economics annual survey of technology trends, this report quantifies the current adoption and investment trends for software as a service (SaaS) as well as the benefits that are driving companies to expand their SaaS implementations. We assess these trends by organization size, sector and geography. In terms of economics, we look at the ROI and TCO experience of those that have adopted SaaS solutions. We conclude with practical advice for those considering deployment of software as a service.

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