{"id":239350,"date":"2010-01-27T17:14:00","date_gmt":"2010-01-27T22:14:00","guid":{"rendered":"http:\/\/www.readwriteweb.com\/cloud\/2010\/01\/ovum-saas-driving-hard-forever.php"},"modified":"2010-01-27T17:14:00","modified_gmt":"2010-01-27T22:14:00","slug":"ovum-the-continued-rise-of-the-saas-model-for-it-services","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/239350","title":{"rendered":"Ovum: The Continued Rise of the SaaS Model for IT Services"},"content":{"rendered":"

\"ovumlogo.gif\"SaaS-delivered IT Service Management (ITSM) is rapidly on the rise, creating complications for its on-premise counterparts. The transition is affecting existing, on-premise players like BMC, which to compete, announced its own on-demand service last week.<\/a><\/p>\n

Ovum’s Stephen Mann writes that the shift is evident in a number of announcements, including PepsiAmerica’s news that it is now a Service-now.com<\/a> customer. Service-now.com is one of the leading vendors in the SaaS ITSM market.<\/p>\n

Sponsor<\/em>
<\/a><\/p>\n

“SaaS continues to gain much publicity and vendor backing, and a growing corporate acceptance as an immediate opportunity to quickly and flexibly deliver business-enabling IT services at a lower cost.”\n<\/p><\/blockquote>\n

SaaS-based ITSM models serve as a way for IT departments to work more efficiently under tight resource constraints.<\/p>\n

Mann writes:<\/p>\n

“A major benefit of SaaS for ITSM is that it is aimed directly at the heart of the now commonly overstretched IT function – scarce IT resources can be redirected away from internal IT systems to focus on the delivery of business-critical IT services. However, for many organisations the key benefit of SaaS is its simple, subscription-based pricing model – usually a cost per month (or year) per user that covers everything needed to operate, including support and maintenance. This provides a lower and consistent level of expenditure that is opex rather than a capex investment.”<\/p><\/blockquote>\n

This sector of the SaaS market is reflective of the overall difference between online and on-premise applications. Like any SaaS environment, the development cycles are far more frequent than on-premise applications. On average, a SaaS application will be upgraded several times a year, compared to on-premise tools that get updated every 12 to 18 months. <\/p>\n

So it makes sense that a company like BMC would offer its own SaaS environment to compliment its own on-site offering.<\/p>\n

But enterprise clients need to beware of what they are getting with any SaaS service. SaaS can be confusing when vendors make up their own definitions.<\/p>\n

Mann says it well:<\/p>\n

“A SaaS solution must be architected such that the customer is able to self-customise its ‘application instance’, with these customisations preserved through what should truly be an effortless upgrade process. Without these facilities, the SaaS business case is not so compelling.”<\/p><\/blockquote>\n

Expect on-premise vendors to push a hybrid approach. That might work for some enterprises but the cost efficiencies of a pure SaaS model will be hard to pass up for organizations working with limited resources.<\/p>\n

Discuss<\/a><\/strong><\/p>\n

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SaaS-delivered IT Service Management (ITSM) is rapidly on the rise, creating complications for its on-premise counterparts. The transition is affecting existing, on-premise players like BMC, which to compete, announced its own on-demand service last week. Ovum’s Stephen Mann writes that the shift is evident in a number of announcements, including PepsiAmerica’s news that it is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-239350","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/239350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=239350"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/239350\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=239350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=239350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=239350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}