Enterprises 'must re-evaluate SaaS rationale'

Software as a service – SaaS – will not assume the dominant role in the future of IT that was first thought, analyst Gartner has warned. Organisations should ‘carefully assess their software needs’ in light of the current promises delivered on by SaaS.

From a market perspective, most spending for SaaS is occurring in content, collaboration and communication, and the customer relationship management markets, Gartner reports. These together represented 65 per cent of the global enterprise applications software market in 2009; Gartner says that the global enterprise applications software market will reach $8.8bn in 2010.

SaaS may not have delivered on its early grand promises – says Gartner vice president and fellow David Cearley, speaking at the Gartner SOA & Application Development and Integration Summit (London, June 14-15) – but it has “re-energised the software market and added choice”. SaaS may not solve all the challenges of software delivery, but can provide advantages based on the specific circumstances of a deployment, as it is quicker to implement and configure for less-complex problems.

“SaaS changes the role of IT from implementing its own operations to inspecting a vendor’s operations,” Cearley adds.

Gartner said that despite the perceived unrealised potential, SaaS will “likely penetrate every company at one level or another”.

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