The Top 10 Reasons to Move to SaaS in 2007

According to Nick Carr of "IT doesn't matter" infamy, McKinsey is set to release a study suggesting widespread and robust adoption of SaaS, even at Global 2000 companies.

"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% 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% who were planning to install SaaS apps in 2005."

The most popular SaaS business applications, according to the McKinsey study, are for human-resource management, billing and order entry, and sales management.

What are the top 10 reasons for you to adopt SaaS?

#6 Re-claiming constrained IT resources – SaaS solutions by their nature require considerably less reliance on your IT staff which helps reduce expense, speed up project progress and free up resources for other strategic IT initiatives.

#7 Remote access by default – SaaS solutions are designed for external use and provide secure world-wide remote access at no extra cost. By contrast, on-premise systems typically run on the desktop and require additional software to become web-based and security certificates to provide secure access. As a result, on-premise solutions cost more to acquire and maintain, and take longer to deploy.

#8 Reduced risks – Backing out of a SaaS service is easier and less costly than dumping an unsuccessful on-premise implementation. The unfortunate statistics show that at least 50% of on-premise CRM installations fail, leaving companies with no derived value for their software investment. Their only option is to shelve the software they have already paid for in full.

#9 Single point of performance accountability – SaaS solutions eliminate the accountability gap typical for on-premise solutions with software and hardware components supported by different parties (at a minimum a customer and a vendor). They ensure an unambiguous, single point of accountability for performance.

#10 Alignment of vendor & client interest – To stay in business, your SaaS vendor will need to prove their commitment to you day in and day out. Being satisfied is no longer sufficient, they want you delighted with the quality of service and the value you are receiving over time.

As the leading on-demand sales compensation management solution, Compel® fully leverages the SaaS model. To learn more about Compel and the benefits of SaaS, follow the links below. The SaaS Total Cost of Ownership white paper was prepared by the SIIA (Software & Information Industry Association) Software-as-a-Service Executive Council