Wednesday, March 25, 2009

New Microsoft Study - SaaS Adoption by SMB Grows to 86%

A new Microsoft Study, released today, called the 2009 SMB Insight Report, says, among other things, that SaaS adoption by small and mid-sized businesses will grow to 86% in 2009.

The key trends that Microsoft identifies for Small and Midsized Businesses for 2009 all bode well for SaaS:

1. Lower Budgets Mean Less Has to Be More.
2. Strategic IT Investments Bolster the Bottom Line
3. Service and Responsiveness Are Key to Customer Retention.

4. Smaller Companies Will Increasingly Adopt Cloud Computing.

5. Better Together: SMBs Rely on Trusted Partners.


Somewhat strangely, the highest interest reported by the study for a Microsoft SaaS offering was for Microsoft Silverlight - their competitor to Adobe flash - which I have a hard time thinking of as a SaaS or Cloud Computing kind of thing at all.

So while there is nothing earthshattering here, just more good validation that SaaS is become more and more widely adopted and why, one interesting thing that may not be obvious is that Microsoft is now starting to use the terms "cloud computing" and SaaS - for those of you that don't follow this closely, Microsoft have been pushing the term "Software + Services" as their alternative to SaaS, the idea being you combine traditional desktop software with Internet services. Perhaps now that they are seeing 86% of businesses wanting to adopt SaaS, they've decided to get a little bit SaaSy too.

2 comments:

Anonymous said...

Nice post - great report on SaaS adoption

Mark Smith said...

It is great to see the growth in SaaS adoption and also to see Microsoft start to throw its weight behind "SaaS," but along with more adoption we are also going to see a rise in buyers remorse and SaaS horror stories.

Although SaaS awareness is growing, many organizations still do not have a thorough understanding of the differences between SaaS and COTS solutions and especially how they should be selected.

A nice summary of some of the important factors to be used when selecting a SaaS solution can be found here:

10-factors-to-consider-when-selecting-saas-solutions

Hopefully, the gap between awareness and understanding will be narrowing and not growing bigger as the rate of SaaS adoption accelerates. We all need to do our part to help educate the the market on SaaS

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