Business interest in SaaS applications is growing. An April 2013 Saugatuck Technology survey of 218 IT executives revealed that more than half of them expect to have 50 percent of their application portfolios in the cloud by 2015. However, the same survey found that two thirds of this year’s budget was still going to on-premise applications.
For many businesses there is still some concern about making the move to SaaS applications. Especially when those applications are mission-critical. This is why – according to Gartner – that on-premise spending is about 8 times higher than spending on SaaS applications.
So, why the lag? Why aren’t more businesses moving more quickly to leveraging the cloud? A recent survey by the Association of Accounting Administration might offer some insight. They found that 92% of those survived had concerns about SaaS application downtime and outages.
Now, no one expects software – SaaS or on-premise – to be infallible. The problem with downtime and outages as it relates to SaaS is more about control. Growing interest in SaaS is transforming the role of internal IT. With a SaaS application, internal IT has less control an heightened vulnerability to – well – look like an uninformed fool.
To sell more SaaS applications, SaaS vendors must win over internal IT staff. The following can help: