Financial Crisis Impacts SaaS Adoption

With the financial crisis controlling all aspects of how people do business, IT infiltrators are dissecting its impact on company IT spending. Tech Broiler Jason Perlow, blogged on September 16^th saying that this is going to have “a lasting impact on all kinds of spending habits by large corporations as well as individuals, and will most certainly affect spending on technology.”

In-short, it seems to be agreed by the majority that this will only push the adoption of on-demand services. Many businesses who were before considering these technologies as an optional transformation to their current methods are now considering them mandatory.

So are SaaS solutions really more affordable option for all businesses? I believe they are but for different reasons. For the larger corporation it means the elimination of data centers and saving through virtual consolidation with the shift of applications to SOA. For SMBs it ultimately means the adoption of SaaS. The pay-as-you-go method avoids the immense upfront costs, IT staff, and constant updates.

Twenty-nine percent of leading companies expected to cut or stop IT spending in the fourth quarter of the year. But because business goes on, companies will realize their need for emerging alternatives. And with mergers and acquisitions taking place along with the crisis, the process of integrating disparate data with cloud solutions will be a large focus.