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SaaS Solutions Sell Fast In A/NZ IT Market After Recession
By Johanna Bennett | July 26, 2010
Software-as-a-Service providers are in keen demand post-GFC as organisations look to control costs. iStart’s fifth annual Investment Intentions Survey shows that almost two-out-of-three companies are now using SaaS applications - up from a half a year ago…
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 organisations responding to the survey represent a A$373 million share of Australasia’s estimated A$5.0 billion ICT investment market.
SaaS or “on demand” applications showed a significant gain in market share, and are now in mainstream acceptance. In an overall lower ICT investment market, SaaS solutions grabbed market share from the more traditional application providers.
CRM, eMail and Web hosting/content management leading the SaaS application race, although increased usage was seen across all SaaS categories (ERP, CRM, BI, eMarketing), with one exception - eMail hosting - which dropped from 13% to 11% of businesses - most likely due to larger organisations represented 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 publishing the results, McCall commented “the question is whether spend will ever fully recover to pre-recession levels, or whether intense competition, ‘right-sizing’ of solutions and SaaS uptake 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.
Learn more about the productivity gains possible from investment in technology solutions. The iStart site is where you can research ERP software and what it can do for you. This article, SaaS Solutions Sell Fast In A/NZ IT Market After Recession is released under a creative commons attribution licence.
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