Investment in Cloud Computing Is on the Rise; Resistance to SaaS ERP on the Decline
BOSTON, MA — In the newly released report, SaaS ERP: Trends & Observations 2010, Aberdeen Group, a Harte-Hanks Company, found that 39% of respondents to Aberdeen’s 2010 ERP survey are willing to consider Software as a Service (SaaS) as a deployment option for their Enterprise Resource Planning (ERP) implementations. This is a 61% increase in the willingness to consider SaaS from 2009 to 2010. Not only do we see a significant increase in willingness to consider SaaS or on-demand as a deployment method, but also notable is the decreased willingness to consider the traditional licensed on-premise option, which dropped by almost 18%.
"Since 2007 Aberdeen has been keeping watch on deployment models of ERP," said Cindy Jutras, vice president research fellow and group director, Aberdeen. "In July 2007, we characterized ERP as the Last Bastion of Resistance to Software as a Service (SaaS). In June 2008 we revisited the topic and found SaaS ERP had not kept pace with the hype-cycle of other SaaS enterprise applications. Eighteen months later (at the end of 2009), in spite of the surge in interest in cloud computing and virtualization and the availability of SaaS ERP options from an increasing number of solution providers, SaaS ERP had yet to ‘take off.’ Finally in mid-2010 we are seeing an overall 61% jump in willingness to consider SaaS ERP. Will 2010 finally be the year when those walls of resistance come tumbling down? Or will they just fade away and leave us at the dawn of 2011 wondering what the fuss was all about?"
Seventy-nine percent (79%) of survey respondents are considering SaaS because of the lower total cost of ownership. They are also considering it because it reduces the cost of upgrades and because they have limited IT resources and no interest in building IT staff. Because of this, 2010 could very well be the year in which SaaS ERP really gains strength in the marketplace.
To obtain a complimentary copy of the report, visit: SaaS ERP: Trends & Observations 2010.
Visit www.Aberdeen.com for additional access to complimentary Enterprise Applications Research and Manufacturing Research.
About Aberdeen Group, a Harte-Hanks Company Aberdeen provides fact-based research and market intelligence that delivers demonstrable results. Having queried more than 30,000 companies in the past two years, Aberdeen is positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen for insights that drive decisions