SaaS fails to impress business: Gartner

Costs higher than expected, and difficult to integrate

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.

Join the PC World newsletter!

Error: Please check your email address.

Tags SaaSGartner

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

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

Leo King

Unknown Publication
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?