SOURCE: Avanade

January 19, 2010 09:00 ET

Global Study: Software-as-a-Service Sees Widest Adoption in Business Applications That Companies Ranked Most Strategic

C-Level Executives and IT Decision-Makers Cite Increased Use of SaaS in CRM and Business Intelligence Applications; Vast Majority Plan to Expand SaaS Use in the Next Year

SEATTLE, WA--(Marketwire - January 19, 2010) - According to a recent survey commissioned by Avanade, a business technology services provider, companies are embracing the use of Software-as-a-Service (SaaS) for the most critical applications that they consider differentiators for their businesses. The majority of respondents said they are deploying SaaS for customer relationship management (52 percent) and business intelligence (47 percent), ranking these the highest areas of SaaS use among several areas including enterprise resource planning, collaboration software, and financial systems.

Separately, the majority of respondents reported that these applications were considered differentiators and strategic weapons for their businesses versus the competition. More than 40 percent of respondents named customer relationship management and more than 37 percent named business intelligence as crucial differentiators.

"Software-as-a-Service is quickly gaining acceptance in the enterprise," said Aziz Virani, executive vice president of Global Technologies and Solutions at Avanade. "This online services model is beginning to fundamentally change how IT is consumed and provisioned in large organizations."

The survey, conducted by Kelton Research, also illustrates a clear disconnect between respondents' perceptions and their actual experience with SaaS technologies. Key findings show:

--  While more than 90 percent report their SaaS deployments as successful,
    more than half (54 percent) would have done a more rigorous analysis of
    costs and business benefits before deploying SaaS-based applications.
--  Still, of those currently using SaaS, 65 percent say they have generated
    a reasonable return on investment from their SaaS deployment.
--  And, more than 62 percent of respondents report plans to increase their
    SaaS use in the next year.
    

"In today's technology market, companies have constrained capital budgets and IT resources, a strong desire for rapid deployment, and the need to reduce operational overhead. It is clear that companies see SaaS solutions as a viable way to meet these needs," said Virani. "By outsourcing both critical and non-critical applications, companies can lower overall risk, reduce costs and realize value from the application faster."

Other key results echoed in the October 2009 survey findings release shows:

--  While SaaS is making major inroads, nearly one third (30 percent)
    reported more than a day of business had been lost due to a service outage.
    Despite that issue, SaaS is seen as a resounding success globally -- 93
    percent of companies view their experience as successful.
--  The majority of respondents say they have been using SaaS for a year or
    less (60 percent).
--  Globally, there is a 2:1 ratio of respondents who prefer SaaS delivered
    internally (or as private services) versus from third party service
    providers.
--  And, although the technology may be new to most users, one-third report
    using three or more SaaS providers.
    

About Avanade

Avanade provides business technology services that connect insight, innovation and expertise in Microsoft technologies to help customers realize results. Avanade's services and solutions help improve performance, productivity and sales for organizations in all industries. The company applies Microsoft expertise from its global network of consultants, drawing on the right mix of onshore, offshore and nearshore skills, which together are designed to help deliver results faster, at lower cost and with less risk. Avanade, which is majority owned by Accenture, was founded in 2000 by Accenture and Microsoft Corporation and serves customers in more than 20 countries worldwide with more than 8,600 professionals. Additional information can be found at www.avanade.com.

About the Survey

The Cloud Computing survey was conducted by Kelton Research, an independent research firm, between August 26, 2009, and September 11, 2009, on behalf of Avanade. The 502 respondents include C-level executives, business leaders and IT decision-makers from 16 countries in North America, Europe and Asia-Pacific. For more information on this study and Avanade's online services expertise, please visit http://www.avanade.com/people/thought_detail.aspx?id=79.

Avanade and the Avanade logo are registered trademarks or trademarks of Avanade Inc. Other product, service, or company names mentioned herein are the trademarks or registered trademarks of their respective owners.

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