SOURCE: Acumen Solutions

May 07, 2008 11:15 ET

Fortune 500 and Other Large Enterprises Gravitating Towards On-Demand Solutions

Low Cost of Entry and Speed to Market Drive Enthusiasm, According to Kelton Research "On Demand Software Survey"

LOS ANGELES, CA and VIENNA, VA--(Marketwire - May 7, 2008) - More than half of Fortune 500 and other large enterprises expect to spend more than previously or the same on Software-as-a- Service (SaaS) solutions for their organization in the future. More than seven out of 10 (73%) of the 100 executives interviewed stated that their Enterprise has adopted SaaS or plans to adopt SaaS within the next 18 months, according to a recent national survey conducted by Los Angeles, CA-based Kelton Research. In the survey titled "On Demand Software Survey," confidence in SaaS solutions in the largest global enterprises is gaining ground.

The On Demand Software Survey conducted by Kelton Research was commissioned by Acumen Solutions, a leading business and technology consulting firm, as a means of gathering insight into today's Enterprise IT preferences and buying patterns. More and more Enterprises are considering adopting SaaS because of the benefits it can deliver to their organizations in a relatively short amount of time.

Among the findings in the survey by Kelton Research are:

--  Subscription Costs? No Big Deal. Just over one in five (21%) execs say
    the subscription fees are an issue vs. the old model of a one-time cost
    that depreciated over time.
--  They're Budgeting For It. In fact, a majority (55%) plan to spend the
    same amount of money -- if not more -- on their on-demand software in the
    future.
--  SaaS Wins Over Executive Gatekeepers. They won't be held back by what
    some have viewed as the traditional gatekeepers in getting approval to
    adopt or upgrade on-demand software.  Just 35 percent of those surveyed
    worry that IT will stand in their way, and even fewer (25%) are anxious
    that their CFO won't let them make a go of it.
    

Advantages of On-Demand

Large enterprises such as global financial institutions or multi-national telecommunications companies have invested heavily in technology over the course of the past decade to support software implementations from "cradle to grave." Expensive software licenses, months of development time to create customized applications, quality assurance testing and then on-going maintenance and hosting of business applications involve millions of dollars and a large part of their on-going budget expenditure every year. Championed by such companies as Salesforce.com, Webex, Oracle and Google, Software-as-a-Service (SaaS) delivers services on demand over the Internet on a subscription basis.

Software-as-a-Service allows organizations to launch software for business functions almost immediately while maintaining the ability to customize the software in the future for their specific business needs. With a pricing model based upon monthly user fees, the initial cost of entry for an organization to launch a new software application is often significantly lower.

Large Enterprises Are Finding Unique Solutions to Their Concerns

The Kelton Survey found that these large enterprises have unique considerations when making a buy decision about SaaS.

--  Stressed About Security. Over six in ten (62%) executives admit that
    they still worry about the security of sensitive data outside their
    firewall.
--  Integration of Information. Many (56%) also express concern about
    how easily all of their information can be integrated into new
    applications.

However, these concerns have not stopped their plans for incorporating SaaS into their enterprise IT infrastructure:

--  Fifty five percent of Fortune 500 and other large enterprises expect
    to spend more or the same on Software-as-a-Service (SaaS) solutions
    for their organization in the future.
--  Seventy three percent of the executives stated that their Enterprise
    has adopted SaaS or plans to adopt SaaS within the next 18 months.

"Done properly, SaaS can be a very effective tool in the corporate IT arsenal for rapid launch of technology solutions and a flexible approach to development," says Shally Bansal Stanley, Managing Director of Acumen Solutions Global Services. "Over time our clients have become much more comfortable with SaaS as both a software solution and a platform for rapid development. We have developed unique ways to keep their sensitive data safe and secure, even while interacting with existing stand-alone software systems."

Full Research Report Available

The Kelton Research findings have been published in a broad report entitled "On Demand is In Demand: SaaS Adoption Accelerates Among Large Enterprises," which is supplemented by Acumen Solutions' own field research. The report can be obtained at www.acumensolutions.com/research.

"Our goal with this research is to provide thought leadership in one of our key areas of consulting expertise," explains David Joubran, CEO and President of Acumen Solutions. "With the experience of over 150 SaaS engagements, our Fortune 500 clients have demonstrated a cautious interest in SaaS in the past few years. The sheer size of their organizations demand very careful SaaS strategy and very specialized project implementation skills in order to do it right. The momentum of SaaS adoption in the field has reached a tipping point this year, such that Fortune 500 clients and the largest enterprises in the world are starting to replace large-scale on-premise systems with applications built and hosted upon SaaS platforms."

About Kelton Research

Based in Los Angeles, Kelton Research is a full-service firm offering a broad array of research capability in quantitative and qualitative data capture, from national polling, regional and community studies, surveys, focus groups and instant response sessions. Its clients include NBC, USA Today, Sony, Starbucks and Continental Airlines, to name a few. For more information visit: http://www.keltonresearch.com/.

About Acumen Solutions, Inc.

Acumen Solutions, Inc., established in 1999, is a proven business and technology consulting firm with offices across the U.S. and in Europe. Our unwavering commitment to unmatched quality and service is supported by our track record with Fortune 500 companies, government agencies and other emergent industry leaders in: Communications and Media; Financial Services; Public Sector and Consumer and Commercial Products. Our experience and approach allows us to deliver truly superior solutions in these key areas: Customer Relationship Management, Data Center Solutions, Performance Management and Systems Integration. www.acumensolutions.com

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