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Think twice before implementing SaaS
By siliconindia
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Thursday, 06 January 2011, 18:34 IST |
1 Comments
Bangalore: Ovum warns the CIOs to ensure their decision to implement SaaS is based on a strong business case and not on the back of industry hype to avoid costly project failure.
In a new report on the SaaS delivery of IT management capabilities, brought out that CIOs who do not take the right approach to SaaS could find that their application is more expensive, slower and worse than before.
"There is currently a buzz around SaaS, but CIOs need to ensure their decision to introduce it is based on a strong business case, rather than on the back of industry hype. SaaS is now becoming a mainstream part of the corporate IT mix but using it for the right reasons, in the right places and in the right way within an organization is crucial. CIOs need to establish this before embarking on an implementation project," Stephen Mann, Ovum Analyst and Author of the report.
The report acknowledges the many benefits that SaaS can bring, such as allowing IT resources to be focused on business-critical services rather than on systems that support IT operations and the subscription-based pricing model it offers. However it states that while it may give the illusion of being cheaper, faster and better, in the long-run outcomes can be more expensive, slower and worse if a strong business case is not formed.
