Software-as-a-Service providers are in keen demand post-GFC as organisations look to control costs. iStart’s fifth annual Investment Intentions Survey shows that almost two-out-of-three companies are now using SaaS applications – up from a half a year ago…
ICT investment in A/NZ is predicted to improve slightly (+6.7%) in 2010, bouncing back from a 32 percent drop in 2009 according to the survey. This equates to an estimated A$23 million recovery in revenue for the region’s ICT vendors.
The 400 organisations responding to the survey represent a A$373 million share of Australasia’s estimated A$5.0 billion ICT investment market.
Uptake of SaaS (software as a service) or “on demand” applications gained significant share, and are now fimly in common acceptance. While the overall ICT investment market reduced, SaaS applications grabbed market share from their traditional application rivals.
CRM, eMail and Web hosting/content management leading the SaaS application race, although increased usage was seen across all SaaS categories (ERP, CRM, BI, eMarketing), with one exception – eMail hosting – which dropped from 13% to 11% of businesses – most likely due to larger organisations represented in this year’s results.
GM of iStart, Hayden McCall, said that while the increase looked positive, it is up from a low base.
In providing the results, McCall noted “I question whether spend will ever fully recover to levels seen before this recession, or whether the competitive battle for customers, ‘right-sizing’ of solutions and SaaS alternatives will always mean lower investment levels.”
For those readers who are making investment decisions, reaserch on the iStart ‘technology in business’ portals (ref www.iStart.co.nz or www.istart.com.au) where there are hundreds of case studies on business software such as financial packages, manufacturing solutions, ERP, CRM and BI across A/NZ along with buyers guides for the leading vendors.
Click here to read the full version of the Survey.
Want to find out more about SaaS applications?, then visit iStart for case studies, buyers guides and thought leadership on how to choose the best business software for your needs.