Adopting the SaaS Model: A Client Perspective

摘要

The growth of the SaaS model is likely to have a fundamental impact on the whole enterprise IT market. Obviously, software vendors have to change their business models. Hardware manufacturers could also see changes in demand as smaller clients move to bundled services and no longer need low-end servers inhouse. IT services vendors are likely to experience a sea change in the role they play in the industry as well. Indeed, many companies such as IBM, Cisco, Sun, and Google have started tapping into the opportunities that are created by this new business model. To evaluate these strategies, the crucial questions are: which client firms would adopt SaaS and for what applications? I address these questions in this article by identifying client firms' demand characteristics that are associated with their preferences for SaaS. The hypotheses on firms' preferences are consistent with my preliminary observations. Client firms can be guided by these hypotheses in evaluating the SaaS solution for a particular software application. Vendors may also find them helpful in developing product or service strategies in the SaaS marketplace.