Software as a Service (SaaS) is finding its way into small and
medium-sized businesses (SMBs), due to its easy installation and
low cost. But SaaS isn't without its issues -- how do short-staffed
SMBs make the time to integrate SaaS technology with their current
applications? Is it secure? Find the answers to these questions and
more with this IT Management Guide.
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Table of contents
Integration
tricky with many SaaS apps
SMBs
sample SaaS via telecoms
SMB
SaaS sales robust; holdouts remain
NetSuite
IPO has SMBs optimistic
More
resources
[Shamus McGillicuddy, News Writer]As small and medium-sized businesses (SMBs) increase their use
of Software as a Service (SaaS) technology, the need for
integrating the technology with the rest of the businesses
applications is becoming more critical. What they're finding,
however, is that it's a job easier said than done.
According to research firm
Saugatuck Technology Inc., as more companies
use SaaS, the need to integrate those applications with the rest of
a company's systems grows. In fact, 17% of SMBs are using more than
one application delivered via SaaS, according to the Westport,
Conn.-based firm's findings.
"In the early days of SaaS, a lot of applications were
standalone and running in silos," said Liz Herbert, a senior
analyst at Cambridge, Mass.-based Forrester Research Inc. "People
just weren't focused on the challenge of integration. They were
focused on customization. Now we're seeing SaaS used more
broadly."
As a result, SMBs are grappling with how to integrate their
applications without making a risky investment in time and
cash.
Learn more in "
Integration tricky for SMBs using multiple SaaS apps."
Also:
-
Offline SaaS applications on the rise (SearchSMB.com)
As more companies rely on a mobile workforce, SaaS vendor apps are
heeding the call. A growing number are offering offline clients
that can synchronize with online SaaS applications, allowing your
workers to work anywhere, anytime. - Is data integration the Achilles heel of
Software as a Service? (SearchDataManagement.com)
Software as a Service applications can create serious enterprise
data integration challenges. Expert Rick Sherman discusses the
problem and potential solutions.
[Shamus McGillicuddy, News Writer]Telecom providers are looking beyond traditional voice and data
offerings and tapping into the growing (and lucrative) Software as
a Service (SaaS) market. The shift in strategy is a good one,
analysts say. Small to medium-sized businesses (SMBs) that have
been hesitant to adopt the Web-based software delivery model may be
more likely to embrace it if offered by their current telecom
provider.
XO Communications, a Reston, Va.-based telecom, recently
announced a new partnership with Jamcracker Inc., a Santa
Clara, Calif.-based company that offers a unique delivery platform
for third-party SaaS providers. Via Jamcracker's platform, XO will
offer a suite of SaaS business applications to SMBs in the 75
metropolitan areas it services.
Erin TenWolde, a senior analyst at Framingham, Mass.-based IDC,
said many SMBs prefer to work with trusted advisors when making
technology decisions. The
SaaS market is flooded with young companies unfamiliar to SMBs,
but those SMBs have long-established relationships with their
telecom providers.
"I do think when it comes to technology adoption, those
companies will go towards trusted advisors and established
relationships to help navigate those purchases," TenWolde said. "I
think a lot of the telecom companies are maybe looking at SaaS and
SaaS-related opportunities."
Find out more in "
SMBs sample SaaS via telecoms." Also:
- SaaS CRM software takes vertical approach
(SearchCRM.com)
RightNow and Salesforce.com have both released vertical versions of
CRM recently. On-demand is catching up with on-premise, but both
have a long way to go. - EMC targets SMBs, delays Software as a Service
plans (SearchStorageChannel.com)
EMC is developing Software as a Service products but won't roll
them out to partners until 2008; instead it will build its SMB
market share with new storage products and support.
[Shamus McGillicuddy, News Writer]A new report out earlier this month finds that small and
medium-sized businesses are diving deep into the Software as a
Service (SaaS) market. But on its heels is a report from another
major research firm suggesting that SMBs may be kicking the tires,
but they're not buying.
So which is it? Boom or bust? It really depends on which side of
the fence you're standing, said experts. It's a delivery model that
has everything to lure SMBs -- easy installation, low cost. But
some SMBs say they still have issues with security and
flexibility.
According to
Saugatuck Technology Inc., a Westport,
Conn.-based research firm, the percentage of businesses with one or
more SaaS applications in place increased from 11% in 2006 to 26%
in 2007. Growth among SMBs, defined as businesses with less than $1
billion in revenue, was even more dramatic: SMB adoption rose from
9% in 2006 to 21% in 2007.
William McNee, founder and CEO of Saugatuck, said SaaS, a
subscription-based, online software delivery model, is moving
beyond adoption by line-of-business managers as IT organizations
start investing in SaaS products with higher levels of
customization, collaboration and personalized workflow.
Learn more in "
SMB SaaS sales robust, but holdouts remain." Also:
[Linda Tucci, Senior News Writer, and Shamus McGillicuddy, News
Writer]Gerry Morton, CEO of EnergyFirst, a Manhattan Beach,
Calif.-based maker of protein shakes, has been using NetSuite Inc.
products to run his 10-employee business for three-and-a-half
years. The way he sees it, NetSuite's attempt to raise $75 million
through an initial public offering (IPO) could be a good thing for
customers.
"They'll have more money to invest in making the software
better," Morton theorized. "I understand there is going to be a lot
of cost and overhead associated with it and the company could
potentially get defocused, which is not good. But I hope that is
offset by the [money] they'll have to throw at improving their
technology."
Founded in 1998 by Oracle Corp. CEO Larry Ellison and Evan M.
Goldberg, NetSuite's chairman and chief technology officer since
2003, NetSuite offers Web-based accounting and other business
software to small and medium-sized businesses (SMB) like
EnergyFirst. In recent years, NetSuite has been gaining ground with
companies that could not afford and did not warrant the kind of
customized, enterprise-level business software offered by companies
like Oracle.
Learn more about the IPO in
"
NetSuite IPO has SMBs optimistic." Also: