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Cost and innovation are key reasons for SaaS adoption

by Mark Adams, on November 28, 2014

Original article at: http://www.ashdowngroup.com/news/gartner-cost-and-innovation-are-key-reasons-for-saas-adoption-news-801762744

Cost and innovation are key reasons for SaaS adoption

Global buyers of cloud applications have referred to cost, innovation and agility as key reasons for adoption, according to Gartner.

It was found that overall cost reduction is the main reason for investment, with it being particularly high for junior IT roles and senior business executive positions. Top drivers for adopting the cloud included the fact it was a modern approach, the innovation it delivers and its operational agility, while senior IT leaders ranked business advantage more highly than junior IT roles.

Gartner concluded that chief information officers are hoping to use the cloud to create a modern and innovative IT environment, providing operational agility and business benefits. On the other hand, business leaders believe the cloud is a way of saving money, suggesting they do not yet fully appreciate the potential benefits it brings. Gartner believes the public cloud is not the most appropriate model to use for all scenarios in companies, as the decision to deploy the technology should depend on how business-critical the solution is. Other factors such as geography, business agility, usage scenario and IT architecture also have a significant impact on these kind of decisions.

The Gartner survey found that security, privacy and worries over government snooping are concerns for respondents. Laurie Wurster, research director at Gartner said: “Data loss, data breaches, unsecure application programming interfaces (APIs) and shared technology in a multitenant environment are just a few of the concerns expressed by respondents tackling the option of using public cloud.

“In addition, recent concerns of government snooping in the name of anti-terrorism and general privacy issues contribute to the lack of public cloud adoption.”

Fabrizio Biscotti, research director at Gartner, said cloud-hosted applications are continually growing to be alternatives to internally managed systems, helping to increase demand or SaaS extension and integration.

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