Gartner study: Australia catching up to early SaaS adopters

Survey of 258 global organisations finds nearly 90 per cent intend to maintain or grow their SaaS usage

One hurdle to SaaS adoption is concerns over security, but Ganley sees these concerns eroding as cost pressures increase in the current economic climate.

“But security does tend to be the big driver of ‘oh I can't do that, because how secure is my data, how secure are my processes?’ and those sorts of things,” she said.

Excessive total cost of ownership was a key driver of the move from onsite solutions to SaaS, and Gartner expects this motivating factor to continue to drive SaaS adoption in 2009 as organisations look to do more with less.

“I think because of the lower price points for SaaS offerings they are going to be more attractive than some of the on-premise stuff that you have to go and get a capital expenditure for. If you are belt tightening you are unlikely to get that capital expenditure,” Ganley said, adding that Gartner has a research note in preparation that predicts Asia-Pacific will not be as badly affected by the economic downturn as Europe and North America.

“If you look at China alone they can look to their domestic market which will keep them growing fairly strongly for the next couple of years, and that will help Australia because we provide so many raw materials. But I do think we will see a bit of a downturn here – the question is how big.”

Replacement of on-premises solutions and net-new implementations were also cited as major drivers of future SaaS deployments. More than a third of respondents indicated plans to move from on-premises to SaaS, largely due to a lack of on-site solutions meeting performance expectations and lower total cost of ownership.

In October, Gartner predicted SaaS enterprise apps will top $US14.8 billion by 2012.

On the local SaaS front, Telstra recently launched its T-Suite SaaS platform, including partnerships with Microsoft and JamCracker, while IBM has also jumped into SaaS.

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