7445_28-33_COVER STORY.qxd 16/9/08 12:54 Page 31
COVER STORY ■
Agent of change – the analyst view
SAAS is no passing trend, but is becoming a key software, the devices that store data associat-
delivery vehicle for IT in the medium to long ed with the application and also the network
term, the industry analyst firm IDC has said. that enables their work to be shared with
“Medium-sized companies currently represent colleagues.
the ‘hot spot’ for ICT spending in Europe, and “The logic behind end-user demand is very
the transparency of SaaS represents a very solid, based as it is on a requirement for a soft-
attractive option for these businesses as they ware purchaser to see clearly the relationship
continue to take a more strategic approach between the total cost of software (including
towards ICT investments and spending.” all support and running costs) and the benefit
IDC identified three primary attributes of that it accrues. The simple fact is that SaaS
software on demand, tying them closely to the achieves far more transparency in associating
principles of Web 2.0. These are: cost with benefit than traditional software
• The web as a platform delivery and go-to-market models. This is
• Services, not packaged software exactly what the end-user community is look-
• Cost-effective scalability. ing for when attempting to minimise the cash
“In truth, the vehicle is a complete ICT delivery risk associated with software use,” said the
model and ‘just’ software on demand could be analyst firm. SaaS is “the new reality of soft-
regarded as a misnomer,” IDC said. “When ware delivery” – and IDC forecasts its use will
users access a web-based application they grow significantly worldwide, tripling from
also use the computer hardware that runs the US$6.8bn in 2006 to US$21.1bn by 2011.
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