Enterprise CIOs Still Wary of SaaS

A new Forrester Research study found that while the adoption of hosted apps among big businesses has jumped since last year, most CIOs and IT managers still don’t consider software-as-a-service (SaaS) a viable option. You can read the full results here, but the report says you can chalk this anxiety up to concerns about security and integration issues.

The report underscores the importance of flexibility that businesses are looking for within their IT departments. While many thought SaaS would be the end-all, be-all software solution when it first came out, it simply hasn’t, and never will be. One of the primary reasons why the hype factor around SaaS has begun to plateau is due in large part to enterprises’ inability to scale and integrate SaaS solutions, resulting in the inevitable kickback that’s lead to concepts such as cloud computing and Web-based platforms. The fact is that 20 years from now the majority of businesses will still be running their mission-critical applications internally.

That’s not to say that SaaS doesn’t have its place…it does and is a great deployment option for companies looking to save time and money. The key will be giving businesses the opportunity to select that time and place.