SaaS fails to impress business: Gartner

Costs higher than expected, and difficult to integrate
  • (Unknown Publication)
  • — 11 July, 2009 03:45

Businesses in Britain are "underwhelmed" with software as a service, according to Gartner.

On a 'satisfaction scale' of 0 to seven, British businesses rated SaaS at 4.34, lower than US businesses at 4.94. Gartner called the British reaction "little more than lukewarm".

SaaS users in the UK said they felt it took longer than they expected to move to the technology. They were also frustrated that costs were unpredictable and ongoing support was poor.

But this came at a time when SaaS was in mainstream use more "than ever before", Gartner said. Its research, among 333 UK and US enterprises, found SaaS to be commonplace in business IT strategy, and that businesses found most suppliers reliable.

Nearly six in 10 companies will maintain their current levels of SaaS in the next two years, it said. Some 32 percent will extend SaaS usage and only 5 per cent will decrease levels.

Nevertheless, satisfaction remained low. "Our research findings did not exactly provide a ringing endorsement of SaaS, in fact I would go as far as to say that satisfaction levels among SaaS users are little more than lukewarm," said Ben Pring, research VP at Gartner.

Businesses wanted more assurance over technical requirements, security, privacy and ease of integration, the survey showed, and these factors were hindering its adoption. Gartner said this contradicted "the general impression that SaaS could help alleviate costs and that it does not require much integration".

Soeren von Varchmin, VP SaaS at virtual machine supplier Parallels, said vendors needed to automate billing and provision to cut costs. "Without automation SaaS is not only unprofitable for vendors but unattractive for end users as it's difficult to realise the cost benefits," he said.

Open standards, he added, would also enable users to integrate systems more easily.

Rob Lovell, chief executive at hosted software provider ThinkGrid, said many SaaS vendors didn't offer customer service to match that of the established on-premise providers. "For SaaS to succeed, vendors must implement tried and tested practices such as 99.99 SLAs and 24/7 telephone support from the outset," he said.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Leo King

Unknown Publication
Topics: Gartner, SaaS
Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Compare & Save

Deals powered by WhistleOut
WhistleOut

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?