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Software as a service is an alluring concept to IT pros faced with endless software upgrades, patching, and license wrangling. Gartner estimates the market for enterprise applications as a service will enjoy compound annual growth of 22% through 2011. That's more than double the rate for all enterprise software.
One big reason businesses turn to SaaS is cost savings. According to a total cost of ownership study conducted by Network Computing in March, CRM as a service for 105 users saved as much as $135,000 over three years compared with on-premises CRM. Savings came primarily from eliminating the need for hardware and software. IT pros shouldn't dismiss SaaS without articulating your reasons. Line-of-business folks have been known to make end runs, so if SaaS isn't appropriate for a given app, be prepared to explain why.
The Opportunity |