In a recent blog, Nicholas Carr writes that “large companies appear to be jumping en masse onto the software-as-a-service bandwagon, according to a new survey of CIOs by management consultants McKinsey & Company. The survey found that 61 percent of North American companies with sales over $1 billion plan to adopt one or more SaaS applications over the next year, a dramatic increase from the 38 percent who were planning to install SaaS apps in 2005.”
This conclusion should not surprise anyone who’s been watching the sales increases at Salesforce.com or the growing traction of newer SaaS players. What’s significant is not that SaaS is growing, but that SaaS is gaining acceptance within businesses that rejected SaaS only a few years ago. Indeed, I remember a meeting at a particular company back in 2003 when I was told that “We will never use an application we don’t own.” In 2006 that company implemented three SaaS-based applications. So, I guess you should never say “never.”
In addition to the data points from the study Carr cites, other industry analysts are coming to the same conclusion
Read more at: The Intelligent Enterprise