Software-as-a-Service Adoption and Economic Experience

March, 2011


This study examines adoption and investment trends for SaaS, providing data about how many organizations have the technology in place, how many are implementing it, and how many are expanding implementations. To give additional insight, we look at the economic experience of those that have adopted the technology: We examine return on investment experience and balance the potential ROI against the risks, measured in terms of the percentage of organizations that exceed budgets for total cost of ownership (TCO). In addition, we report on the service-success and cost-success rates for outsourcing of the application hosting function, and on adoption by sector and organization size. We conclude with recommendations on SaaS adoption. (15 pp., 9 figs.)
[Research Byte]