Enterprises are rapidly shifting to Software as a Service (SaaS), with the industry poised to generate more than $112.8 billion in revenue by 2019, according to IDC. Enterprises now use 16 SaaS apps on average—up 33% from last year, according to a new report from BetterCloud. And 73% of organizations said nearly all of their apps (more than 80%) will be SaaS by 2020.
BetterCloud—which, it should be noted, provides SaaS management software—surveyed more than 1,800 IT professionals for their report. Some 38% of tech workers said their company is already running almost entirely on SaaS, and that they run 2.1x more SaaS apps than the average organization, the survey found.
Tech professionals from these SaaS-focused companies are 52% more likely to say that the delivery model helps them attract better talent than the average workplace, BetterCloud found. They are also 31% more likely to say SaaS improves employee satisfaction.
SEE: SaaS Research 2017: Adoption rates, business benefits, and preferred providers (Tech Pro Research)
While IT teams from SaaS-majority companies report benefits including better communication, fewer costs, and improved employee satisfaction, these organizations face several challenges. For example, SaaS leaders are 3.5x more likely than the average company to say that delegating administrator privileges is difficult, the survey stated. These companies were also more than twice as likely to report challenges with understanding external access, automating repetitive tasks across apps, and managing users and assets across apps.
To adapt to this new enterprise delivery model, IT must evolve in three key areas, according to the report:
1. Roles and responsibilities
CIOs must break away from the traditional decentralized ownership approaches to achieve more agility across the company, and focus on adding services that enhance SaaS usage.
As automation and cloud services move to the forefront, CIOs need to standardize business processes to provide more value.
Current IT budgets do not support the changes needed for digital transformation efforts, and the budgetary process must be adapted to support the fast-changing needs of the digital enterprise.
The 3 big takeaways for TechRepublic readers
1. Some 73% of organizations said that more than 80% of their apps will be SaaS by 2020, according to a new report from BetterCloud.
2. The 38% of companies that have already moved a majority of their apps to SaaS report benefits such as attracting better talent and improving employee satisfaction; they also report difficulties delegating admin privileges and managing users and assets across apps, the report found.
3. CIOs must evolve IT roles and responsibilities, processes, and budgets to get the most out of the growing SaaS market.
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- Oracle ramps up SaaS and PaaS offerings for a holistic cloud approach (ZDNet)
- Microsoft aims to simplify enterprise IoT deployments with SaaS offering, analytics tools (TechRepublic)
- Six reasons why companies hang on to their data centers (ZDNet)
- Supercomputing as a Service comes to the cloud with new Cray partnership (TechRepublic)
Alison DeNisco Rayome has nothing to disclose. She does not hold investments in the technology companies she covers.
Alison DeNisco Rayome is a Staff Writer for TechRepublic. She covers CXO, cybersecurity, and the convergence of tech and the workplace.