SaaS technology will not dominate future of IT, report predicts

16 June 2010

Software-as-a-Service (SaaS) will have less of an impact on the technology sector than originally thought, an IT analyst has suggested.

According to Gartner, many businesses need to reassess software requirements in relation to SaaS.

Predictions from the firm suggest that while SaaS will have a role to play in the future of IT processes within businesses, 90 per cent of the software’s deployment is not pay-per-use.

David Cearley, vice-president and fellow at Gartner, said that certain “bad practices” associated with on-premise software have been carried over into SaaS.

“Shelfware as a service is the concept of paying for a software subscription that is not being accessed by an end user,” he explained.

“This most commonly occurs in large organizations, but it could happen to any company, especially those that have downsized their workforce, or one that has oversubscribed to trigger a volume discount.”

The report from Gartner recommended that firms need to match their own individual needs to the potential benefits SaaS provides.

In-house governance surrounding the software needs to be implemented while vendors need to be assessed for how useful they are for “application needs as applicable”, the organisation urged.

Figures cited by Mr Cearley showed that SaaS accounted for 3.4 per cent of total enterprise spending during 2009.

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