Software-as-a-Service providers are in keen demand post-GFC as organisations look to control costs. iStart’s fifth annual Investment Intentions Survey shows that almost two-out-of-three companies are now using SaaS applications – up from a half a year ago…
ICT investment in A/NZ is predicted to improve slightly (+6.7%) in 2010, bouncing back from a 32 percent drop in 2009 according to the survey. This equates to an estimated A$23 million recovery in revenue for the region’s ICT vendors.
The 400 organisations responding to the survey represent a A$373 million share of Australasia’s estimated A$5.0 billion ICT investment market.
SaaS or “on demand” applications showed a significant gain in market share, and are now in mainstream acceptance. In an overall lower ICT investment market, SaaS solutions grabbed market share from the more traditional application providers.
CRM, eMail and Web hosting/content management leading the SaaS application race, although increased usage was seen across all SaaS categories (ERP, CRM, BI, eMarketing), with one exception – eMail hosting – which dropped from 13% to 11% of businesses – most likely due to larger organisations represented in this year’s results.
General Manager of iStart, Hayden McCall, noted that although the increase looked good, it has not recovered after last year’s low levels.
In providing the results, McCall noted “I question whether spend will ever fully recover to levels seen before this recession, or whether the competitive battle for customers, ‘right-sizing’ of solutions and SaaS alternatives will always mean lower investment levels.”
If readers are considering a technology investment, iStart ‘technology in business’ research portals (ref www.iStart.co.nz or www.istart.com.au) are the place to go with hundreds of case studies on business technology such as financial packages, manufacturing solutions, ERP, CRM and BI across A/NZ and buyers guides for the leading solution providers.
Click here to read the full version of the Survey.
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