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Research: Virtualization and Business Realities

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Strategy: SaaS-Based IT Management

Research: Virtualization and Business Realities

Software as a service (SaaS) is transforming many IT markets, from business applications to productivity tools. The SaaS approach has overcome initial hesitation over security, availability and other concerns to become a regular option on the menu when organizations consider new technology.

However, the SaaS model hasn’t much caught on when it comes to IT management. At first glance, that’s a surprise, because IT professionals grumble about the cost and complexity of premises products. One respondent to our most recent survey on enterprise management tools said, “Existing tools are difficult to deploy, manage and use.” And our survey data clearly show that IT thinks enterprise management products are too expensive.

This seems like fertile ground for SaaS providers, who have charged into other markets promising low capital costs and easy deployment. But when it comes to enterprise management, IT pros are wary of turning over critical IT apps and data to providers who live in the cloud. Said the same respondent, “We looked at SaaS solutions and they were no good.”

That said, SaaS has made some inroads. According to our survey, 10% of respondents currently use SaaS for IT management, and another 21% are evaluating them. Clearly, IT has noticed the SaaS option, even if they haven’t flocked to adopt it. (S3280811)

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