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A/NZ IT Market Keen On SaaS Solutions Post-recession
By Johanna Bennett | July 13, 2010
As business look to contain costs in the post-GFC fall-out, Software as a Service vendors are in keen demand. iStart’s fifth annual Investment Intentions Survey indicates that close to two-thirds of organisations are using SaaS applications - a figure that was below 50 percent last year.
ICT investment in A/NZ is predicted to improve slightly (+6.7%) in 2010, bouncing back from a 32 percent drop in 2009 according to the survey. This equates to an estimated A$23 million recovery in revenue for the region’s ICT vendors.
The 400 businesses completing to the survey represent a A$373 million chunk of Australasia’s A$5.0 billion ICT investment spend.
Uptake of SaaS (software as a service) or “on demand” applications gained significant share, and are now fimly in common acceptance. While the overall ICT investment market reduced, SaaS applications grabbed market share from their traditional application rivals.
The leading SaaS applications are CRM, eMail and Web hosting/content management, but increased uptake has occurred across ERP, CRM, BI and eMarketing, in fact all categories except eMail hosting - which saw a decline from 13 percent to 11 percent of organisations - probably reflective of the generally larger organisations in this year’s results.
General Manager of iStart, Hayden McCall, commented that while the increase looked encouraging, it is off a low base.
In releasing the results, McCall said “the question is whether spend will ever recover to pre-GFC levels, or whether tough competition, ‘right-sizing’ of solutions and the lower overall costs of SaaS soluitons mean lower investment levels are here to stay.”
For those readers who are making investment decisions, reaserch on the iStart ‘technology in business’ portals (ref www.iStart.co.nz or www.istart.com.au) where there are hundreds of case studies on business software such as financial packages, manufacturing solutions, ERP, CRM and BI across A/NZ along with buyers guides for the leading vendors.
Click here to read the full version of the Survey
http://www.istart.co.nz/index/HM20/PC0/PVC197/EX245/AR213279
Want to find out more about SaaS applications?, then visit iStart for case studies, buyers guides and thought leadership on how to choose the best business software for your needs.
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