{"id":49585,"date":"2008-06-09T03:52:53","date_gmt":"2008-06-09T00:52:53","guid":{"rendered":"https:\/\/www.altoros.com\/blog\/?p=49585"},"modified":"2021-07-28T20:30:42","modified_gmt":"2021-07-28T17:30:42","slug":"no-to-saas","status":"publish","type":"post","link":"https:\/\/www.altoros.com\/blog\/no-to-saas\/","title":{"rendered":"No to SaaS? Dismissing the Fear of On-demand"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.altoros.com\/blog\/no-to-saas\/#Eight_reasons_to_say_no\" >Eight reasons to say no<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.altoros.com\/blog\/no-to-saas\/#The_growing_need_for_SaaS\" >The growing need for SaaS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.altoros.com\/blog\/no-to-saas\/#Why_the_adoption_happens\" >Why the adoption happens<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.altoros.com\/blog\/no-to-saas\/#Need_more_facts\" >Need more facts?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.altoros.com\/blog\/no-to-saas\/#Further_reading\" >Further reading<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Eight_reasons_to_say_no\"><\/span>Eight reasons to say no<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The software-as-a-service (SaaS) market only continues to grow, presenting an efficient and reliable business model. According to Gartner, 25% of new business software will be delivered as SaaS by 2011. This boom makes companies that had never considered moving to the SaaS model before change their minds in favor of adopting it.<\/p>\n<p>Providing operational and cost-saving benefits, software as a service is a concept that seems so attractive and luring. However, according to a recent Forrester survey, there are <a href=\"https:\/\/www.networkworld.com\/article\/2280801\/top-8-reasons-why-companies-still-shun-saas.html\" target=\"_blank\" rel=\"noopener noreferrer\">top 8 reasons<\/a> why companies say \u201cNo, thanks\u201d to SaaS:<\/p>\n<blockquote><p><em>66% Integration issues<\/em><br \/>\n<em>61% Total cost of ownership (TCO) concerns<\/em><br \/>\n<em>55% Lack of customization<\/em><br \/>\n<em>50% Security concerns<\/em><br \/>\n<em>42% \u201cWe can\u2019t find the specific application we need\u201d<\/em><br \/>\n<em>39% Complicated pricing models<\/em><br \/>\n<em>39% Application performance<\/em><br \/>\n<em>34% \u201cWe\u2019re locked in with our current vendor\u201d<\/em>\n<\/p><\/blockquote>\n<p>I can&#8217;t help but comment on these survey results.<\/p>\n<p><i>Integration challenges<\/i>&#8230;Well, duuh, select a trusted vendor, who won\u2019t let you face these issues. Regarding <i>TCO<\/i>&#8230;Yes, quality actually costs money. What\u2019s wrong with that? About <i>customization<\/i>&#8230;Mm&#8230;ask and you shall be granted. <i>Security<\/i>\u2026Not gonna repeat it, see below. <i>Can&#8217;t find specific apps<\/i>?..Ever tried asking? <i>Complicated pricing models<\/i>? Possible, but, again, depends on a vendor. <i>Performance<\/i>&#8230;Well, you\u2019re the one selecting your applications. Make sure they work right from the very beginning. <i>Vendor lock-in<\/i>&#8230;OK, that\u2019s a sound enough excuse.<\/p>\n<p>The problem I\u2019m seeing with all these \u201cexcuses\u201d is that these people never even looked into the SaaS market out there. They are just repeating the rumors and scarry stories they heard somewhere else (perhaps, from the same hypocrites that don\u2019t even know a single reliable SaaS vendor).<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_growing_need_for_SaaS\"><\/span>The growing need for SaaS<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Though these companies still have concerns, software as a service takes over.<\/p>\n<p>In today&#8217;s world of changing business requirements, flexibility is the key to providing a positive customer experience and, in the long run, succeeding. Flexibility, however, is a complicated deal. Not all companies have the power, time, and resources to constantly readapt to new operating systems, new security measures, new software, and new work strategies. If you spend all your time on these processes (and they do have the potential to take ALL of your time), who\u2019s gonna do the business for you?<\/p>\n<p>This is precisely the reason why the SaaS market has exploded in the recent years and why companies increasingly put their trust along with their confidential data into the hands of third-party service providers, rather than in those of their in-house staff.<\/p>\n<p>Google\u2019s recent survey on \u201c<a href=\"https:\/\/googleforwork.blogspot.com\/2008\/03\/survey-says.html\" target=\"_blank\" rel=\"noopener noreferrer\">message security and compliance<\/a>,\u201d involving 575 IT professionals, showed that the majority of respondents (53%) believe that \u201cIT holds ultimate responsibility for their organization\u2019s communications security and compliance. They also realize that organizations need to have policies and mechanisms in place to help achieve this.\u201d<\/p>\n<p><center><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2008\/06\/google-survey-saas-security-compliance-2008.png\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2008\/06\/google-survey-saas-security-compliance-2008-1024x538.png\" width=\"640\" class=\"aligncenter size-large wp-image-53568\" \/><\/a><small>Source: <a href=\"https:\/\/static.googleusercontent.com\/media\/www.google.com\/uk\/\/a\/help\/intl\/en\/security\/pdf\/cir_08.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">Google Research<\/a><\/small><\/center><\/p>\n<p>The survey confirmed the growing need for software as a service, \u201cwhich is taking the place of in-house solutions that tend to require significant internal resources to maintain. The results suggest that one reason SaaS is gaining momentum is that the problems it solves are top-of-mind for IT departments, such as spending too much time or money on troubleshooting and maintenance.\u201d<\/p>\n<p>\u201cBy using SaaS service providers, organizations can offload capacity challenges, get real-time updates, and benefit from the economies of scale of a large network,\u201d the report says.<\/p>\n<p><center><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2008\/06\/googele-research-top-reasons-for-saas-adoption-2008.png\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2008\/06\/googele-research-top-reasons-for-saas-adoption-2008-1024x546.png\" width=\"640\" class=\"aligncenter size-large wp-image-53571\" \/><\/a><small>Source: <a href=\"https:\/\/static.googleusercontent.com\/media\/www.google.com\/uk\/\/a\/help\/intl\/en\/security\/pdf\/cir_08.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">Google Research<\/a><\/small><\/center><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_the_adoption_happens\"><\/span>Why the adoption happens<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Describing where SaaS may lead you, <a href=\"https:\/\/www.linkedin.com\/in\/wmcknight\/\" rel=\"noopener noreferrer\" target=\"_blank\">William McKnight<\/a> has posted <a href=\"https:\/\/www.techtarget.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">an entry on his blog<\/a> recently, uncovering the essence of the adoption process.<\/p>\n<div id=\"attachment_53575\" style=\"width: 140px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2008\/06\/william-mcknight.jpg\"><img decoding=\"async\" aria-describedby=\"caption-attachment-53575\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2008\/06\/william-mcknight-150x150.jpg\" width=\"120\" class=\"size-thumbnail wp-image-53575\" \/><\/a><p id=\"caption-attachment-53575\" class=\"wp-caption-text\"><small>William McKnight<\/small><\/p><\/div>\n<p>These are the three hallmarks (or selling points) of SaaS he names:<\/p>\n<blockquote>\n<ol><em><\/p>\n<li style=\"padding-bottom:6px;\">No IT involvement.<\/li>\n<li style=\"padding-bottom:6px;\">Pay-as-you-go with little upfront cost.<\/li>\n<li>The vendor takes all responsibility for infrastructure and upgrades\u2014those invasive and non-value-added activities.<\/li>\n<p><\/em><\/ol>\n<\/blockquote>\n<p>Let me list a few more benefits of having SaaS in your life from my point of view:<\/p>\n<ul>\n<li>increased implementation speed<\/li>\n<li>increased flexibility and usability<\/li>\n<li>access from anywhere<\/li>\n<li>superior protection and security of your data<\/li>\n<\/ul>\n<p>With that said, being conservative surely helps sometimes, but don\u2019t be afraid of being progressive. C\u2019mon folks, look at the real picture. With SaaS, you\u2019re not just letting out-of-house players be in control of your precious resources, but rather letting the experts protect and even fix it.<\/p>\n<p>William also suggests some rules of thumb to keep to when selecting a SaaS vendor\/solution:<\/p>\n<blockquote>\n<ol><em><\/p>\n<li style=\"padding-bottom:6px;\">Check the value proposition of the application.<\/li>\n<li style=\"padding-bottom:6px;\">Ensure the ability to expand the core functionality of the application beyond the provided functionality (scalability).<\/li>\n<li>Don\u2019t sabotage IT plans.<\/li>\n<p><\/em><\/ol>\n<\/blockquote>\n<p>If done properly, you can increase your productivity by turning to SaaS and let your IT people spend more time on thier direct responsibilities (and, actually, let them do their job more efficiently).<\/p>\n<p><center><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2008\/06\/google-research-top-productivity-challenges-2008.png\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2008\/06\/google-research-top-productivity-challenges-2008-1024x529.png\" width=\"640\" class=\"aligncenter size-large wp-image-53573\" \/><\/a><small>Source: <a href=\"https:\/\/static.googleusercontent.com\/media\/www.google.com\/uk\/\/a\/help\/intl\/en\/security\/pdf\/cir_08.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">Google Research<\/a><\/small><\/center><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Need_more_facts\"><\/span>Need more facts?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>I also stumbled upon <a href=\"https:\/\/www.networkworld.com\/article\/2284563\/fewer-than-one-in-five-it-execs-adopt-software-as-a-service.amp.html\" rel=\"noopener noreferrer\" target=\"_blank\">this article<\/a> on NetworkWorld discussing the increasing adoption of software-as-a-service practices all over the industry. It states that the recent \u201c<em>Forrester survey of more than 1,000 IT decision-makers in North America and Europe found that 16% of enterprises had adopted SaaS as of 2007\u2014an increase from 12% the previous year but still a small minority<\/em>.\u201d<\/p>\n<p>The article goes on saying that the \u201c<em>actual enterprise adoption of SaaS might be much higher, though, because business units often deploy hosted applications on their own, sometimes seeing it as a way to free themselves from relying on IT<\/em>.\u201d<\/p>\n<blockquote><p>The number of IT executives who have at least some interest in hosted software indicate to Herbert that IT involvement in SaaS projects is poised for a big increase.<\/p>\n<p>The hosted software market is growing more mature, with extensive customization and integration into an enterprise\u2019s internal systems. And whereas SaaS applications are typically for general business tasks like human resources, there are now hosted applications designed specifically to help IT staffers manage an enterprise\u2019s technology.<\/p><\/blockquote>\n<p>Another recent study by Kelton Research confirms the enterprise\u2019s increasing interest in on-demand services, with nearly 73% of large companies saying they had adopted or plan to adopt SaaS in the next 18 months.<\/p>\n<p>Think again, if you are still doubting to SaaS or not.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Further_reading\"><\/span>Further reading<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/building-a-bridge-between-salesforce-crm-and-quickbooks-connectors-do-not-matter\/\" rel=\"noopener noreferrer\" target=\"_blank\">Building a Bridge Between Salesforce CRM and QuickBooks<\/a><\/li>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/saas-grows-saas-crm-flourishes-crm-integration-becomes-easy\/\" rel=\"noopener noreferrer\" target=\"_blank\">Implementing a SaaS-Based CRM: Best Practices and Forecasts<\/a><\/li>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/data-integration-issues-moving-legacy-apps-to-the-cloud\/\" rel=\"noopener noreferrer\" target=\"_blank\">Solving Data Integration Issues when Moving to the Cloud<\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr\/>\n<p><center><small>The post is written by Alena Semeshko; managed and edited by <a href=\"https:\/\/www.altoros.com\/blog\/author\/alex\/\">Alex Khizhniak<\/a>.<\/small><\/center><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Eight reasons to say no<\/p>\n<p>The software-as-a-service (SaaS) market only continues to grow, presenting an efficient and reliable business model. According to Gartner, 25% of new business software will be delivered as SaaS by 2011. This boom makes companies that had never considered moving to the SaaS model before change their [&#8230;]<\/p>\n","protected":false},"author":178,"featured_media":53571,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[7],"tags":[960,895],"class_list":["post-49585","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-opinion","tag-data-integration","tag-research-and-development"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>No to SaaS? Dismissing the Fear of On-demand | Altoros<\/title>\n<meta name=\"description\" content=\"&quot;Software as a service&quot; takes over despite the concerns some companies still have. Surprisingly, integrating SaaS can lead to improved security and IT productivity.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.altoros.com\/blog\/no-to-saas\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"No to SaaS? Dismissing the Fear of On-demand | Altoros\" \/>\n<meta property=\"og:description\" content=\"Eight reasons to say no The software-as-a-service (SaaS) market only continues to grow, presenting an efficient and reliable business model. According to Gartner, 25% of new business software will be delivered as SaaS by 2011. 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On her blog, she covers ETL, EAI, BI, open-source, and all the aspects of data integration. Alena is focused on creating awareness, fostering a better understanding, and keeping her readers well-informed on the emerging problems and data integration practices of the day. She possesses rich intercultural experience, having lived in several countries across the globe, and is studying Korean in her spare time.\",\"sameAs\":[\"http:\/\/altoros.com\"],\"url\":\"https:\/\/www.altoros.com\/blog\/author\/alena-semeshko\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"No to SaaS? Dismissing the Fear of On-demand | Altoros","description":"\"Software as a service\" takes over despite the concerns some companies still have. 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