Several important research reports in the past two weeks demonstrate the continuing momentum of Software as a Service (SaaS). These recent announcements reflect a broader market awareness of the disruption SaaS is causing for on-premise software in the enterprise.
SaaS market momentum, coupled with the significant customer benefits it offers, will lead to a continued expansion in the number of new SaaS offerings and amount of repositioning from existing on-premise vendors.
CIOs should respond by developing a comprehensive plan to properly understand, manage and promote SaaS solutions. An important first step is to create a clear view of the current and future application portfolio in light of the capabilities SaaS solutions offer. Reviewing a company’s portfolio of IT-managed applications, along with the on-demand applications flying under IT’s radar, helps CIOs understand the complete IT and application landscape.
CIO’s must then incorporate an organization’s business priorities in order to arrive at the right portfolio of applications and corresponding priorities. Through portfolio analysis and planning, a CIO can channel the momentum and benefits of SaaS. CIOs will better serve the business by extending their own capabilities and avoiding the creation of SaaS silos across functional areas. CIOs that get ahead of SaaS, will be able to simultaneously empower the business, ensure information consistency, and institute proper governance and controls.