Gartner: The Great SaaS Debate

Gartner: The Great SaaS Debate

saas-satisfactionGenerally speaking, I respect Gartner's research. I've quoted Gartner's analysts since about 1992. But a recent Gartner report suggests businesses are only "somewhat satisfied" with software as a service (SaaS). I know SaaS has its flaws and challenges. But are businesses only "somewhat" satisfied with SaaS? Really?

I understand there's continued value for many on-premise software options. But every day, I hear from more and more readers and managed service providers who moved to Salesforce.com, NetSuite, Constant Contact, Hosted Exchange, Hosted SharePoint, Hosted Security, and a range of other SaaS services.

If all of those SaaS adopters are "somewhat satisfied," does that mean they were "very dissatisfied" with their previous on-premise approach?

SaaS Data Points

I believe customers are generally happy with SaaS. But it looks like Gartner's "somewhat satisfied" SaaS statement is backed by in-depth data. Some highlights, according to ZDnet UK:
  • 333 organizations in the UK and US were surveyed
  • On average, respondents ranked their experience with SaaS at 4.74 on a seven-point scale
  • Respondents who had considered using SaaS, but decided not to, said they made this choice due to high cost of service (42 percent), difficulty with integration (38 percent) and technical shortcomings (33 percent), Gartner said
  • 58% of organizations said they would maintain current levels of SaaS over the next two years, while 32 percent said they would expand, five percent would discontinue and five percent would decrease levels
Anybody hearing customer praise -- or push back -- on SaaS?

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