Thirty-nine percent of respondents to a survey are willing to consider Software as a Service (SaaS) as a deployment option for their Enterprise Resource Planning (ERP) implementations. This is a 61 percent increase in the willingness to consider SaaS from 2009 to 2010. Not only do we see a significant increase in willingness to consider SaaS or on-demand as a deployment method, but also notable is the decreased willingness to consider the traditional licensed on-premise option, which dropped by almost 18 percent.
Seventy-nine percent of survey respondents are considering SaaS because of the lower total cost of ownership. They are also considering it because it reduces the cost of upgrades and because they have limited IT resources and no interest in building IT staff. Because of this, 2010 could very well be the year in which SaaS ERP really gains strength in the marketplace.
Comment from Cindy Jutras, vice president research fellow and group director, Aberdeen: Since 2007 Aberdeen has been keeping watch on deployment models of ERP. In July 2007, we characterized ERP as the Last Bastion of Resistance to Software as a Service (SaaS). In June 2008 we revisited the topic and found SaaS ERP had not kept pace with the hype-cycle of other SaaS enterprise applications. Eighteen months later (at the end of 2009), in spite of the surge in interest in cloud computing and virtualization and the availability of SaaS ERP options from an increasing number of solution providers, SaaS ERP had yet to "take off." Finally in mid-2010 we are seeing an overall 61 percent jump in willingness to consider SaaS ERP. Will 2010 finally be the year when those walls of resistance come tumbling down? Or will they just fade away and leave us at the dawn of 2011 wondering what the fuss was all about?
About the report: SaaS ERP: Trends & Observations 2010 from Aberdeen Group is available at the Web site.
Contact: http://www.aberdeen.com
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