2008 Year for SaaS Mass Adoption?
February 24, 2008 by Raj Sheelvant
Phil Wainewright in his blog Eight reasons SaaS will surge in 2008, writes that 2008 is “going to be the year when SaaS becomes impossible to ignore”. Also see Jeff Kaplan’s blog Top Ten Reasons Why On-Demand Services Will Soar in 2008 and Nicholas Carr’s blog 2008: SaaS’s breakout year? both of whom are wrote in early January predicting that 2008 will be the year on-demand software distribution will finally be adopted by the large firms.
Here is another perspective: Fortune magazine in its January 9 article Tech stocks for Tough Times, says that in this choppy economic times “firms that run a software-as-a-service model and ones that are pushing the limits of computer-virtualization technologies” are positioned to withstand the tempest and “no matter what the prevailing economic winds, because they are riding trends that will barrel ahead in good times and bad”.
In my view, SaaS delivery model will be mainly seen from a financial perspective. For the first time the offshoring (mainly to India) is beginning to look expensive. Not only has the employee pay in India gone up, the dollar has depreciated dramatically against the rupee thus making offshoring to India less attractive. At the same time ‘virtualization’ and dropping storage costs, is enabling more and more utility computing. So SaaS delivery model provides an excellent alternative to offshoring to India especially in this tough ‘recessionary’ like environment in the US.
When the mainstream financial media like Fortune Magazine begins to concur about the viability of the SaaS delivery model, the CFOs and CIOs will wake up to see the its advantages. (Also see my blog on advantages and disadvantages of SaaS here). I think, SaaS is here to stay and more and more software providers will use SaaS to seamlessly plug into the IT infrastructure of large organizations.
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