In the recent past years, the trends with respect to business software have tremendously changed. With the economic situation at play, and increasing demand and pressure on corporate resources, business organizations have tightened their budgets, and are looking to outsource their non-core IT and communications services.
To meet these challenges and remain competitive, more and more organizations are turning to Software-as-a-Service (SaaS) because of high costs, complex deployments and long implementation cycles associated with traditional enterprise software. By adopting SaaS, organizations can:
- Control IT cost
- Free resources for core activities & focus on core business
- Eliminate a burdensome IT function
- Gain access to high quality IT services and skills
- Reduce the backlog of application development
- Help handle fluctuating IT demands
- Exploit new technology
- Provide speedy response to IT needs
Though the Software-as-a-Service offers various benefits and increasingly viewed as the future of tomorrow’s enterprise IT solutions, some organizations are still hesitant to adopt this model because of their data privacy and security concerns.
Do enterprise software providers need business offerings change?
From the current trend and the world economic situation, it is clear that SaaS is the most cost-effective model that is preferred by many organizations over traditional enterprise software. But, this doesn't mean that enterprise software providers need to change their offerings entirely from enterprise software solutions to SaaS model.
To keep abreast of the market trend and needs, the enterprise software providers need not change their business offerings entirely. Instead, they can have SaaS as an additional offering. By this way, the enterprise software providers can cater to the needs of both the organizations - those who prefer SaaS and those who prefer traditional enterprise software.
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