Welcome!

News Feed Item

While Many Companies Try SaaS for Cost Savings, Top Performers Discover Competitive Advantage, According to IBM Study

Study reveals that SaaS leaders collaborate better with social tools and make better decisions through analytics

ARMONK, N.Y. and ORLANDO, Fla., Jan. 28, 2014 /PRNewswire/ -- Today at IBM Connect 2014, IBM (NYSE: IBM) announced that nearly half of the businesses using Software-as-a-Service (SaaS) are achieving competitive advantage, rather than simply reducing costs. Leading enterprises—those gaining competitive advantage through broad SaaS adoption—are collaborating more effectively  through social business tools, improving the customer experience, and accelerating time to market through their SaaS initiatives, according to a recent survey conducted with more than 800 IT and business decision makers worldwide by the IBM Center for Applied Insights.1

(Logo: http://photos.prnewswire.com/prnh/20090416/IBMLOGO)

Global spending on SaaS is expected to reach $45.6B by 2017, according to industry estimates. SaaS is often used by line-of-business leaders who are looking to deploy technology to rapidly provide their teams with needed functionality, increase productivity and address new market opportunities. In fact, industry analysts estimate that by 2017, CMOs will spend more on IT than CIOs, while Forrester reports that 65 percent of business leaders have plans to buy technology for their group without involving IT at all.

However, circumventing IT to deploy SaaS without provisioning and securing it first can have unintended consequences, and IBM's study suggests that organizations in which IT and business leaders work together to select, secure and deploy SaaS applications are in fact the ones who deliver the greatest value to their organization. Further, organizations that are gaining the most out of their SaaS deployments are more likely to see it as a critical piece of their enterprise cloud strategy when compared to their peers.

Princess Cruise Lines originally turned to SaaS to save money and benefit from increased efficiencies while gaining instant access to technology resources. Over time, however, the company realized that the IBM Connections social software platform, delivered as a service through the cloud, fostered a more team-oriented environment resulting in more innovative thinking. Princess uses this as a competitive differentiator in the market to tout its superior customer service, the net effect of a socially advanced workforce.

Nearly one in five companies that responded to IBM's survey has deployed SaaS broadly and is now gaining competitive advantage as a result. By developing mature and cohesive enterprise-wide SaaS strategies, these Pacesetter organizations are able to improve market agility, achieve a deeper level of collaboration and make better decisions than their peers. Specifically, compared to peers that are newer or less advanced with their SaaS adoption, Pacesetters are:

  • 79 percent more likely to have increased collaboration across their organization and ecosystem through SaaS
  • More than twice as likely to have leveraged analytics across the organization to turn big data into insights using SaaS
  • More than twice as likely to have increased innovation using SaaS

The study confirms that SaaS is delivering on a wide array of benefits, on top of lowering total cost of ownership, and shows that organizations that strategically and collaboratively deploy SaaS are able to execute on programs that drive business growth better than their peers who lag with SaaS deployments.

"It's common knowledge that deploying SaaS broadly has economic advantages, but the truly innovative companies have recognized that SaaS delivers real competitive advantage to fuel top-line growth, as well," said Craig Hayman, IBM General Manager, Industry Solutions and executive sponsor of the study. "Whether they are using it to enter new markets, transform or create entirely new business models, or improve relationships with their customers and suppliers, pacesetting organizations are embracing SaaS in a meaningful way."

IBM Delivers Broad Set of SaaS Solutions
To help organizations accelerate innovation around customer experience and meet their business objectives in concert with their company's IT strategy, IBM unveiled the industry's first cloud-suites for the entire c-suite in June 2013. The offerings – which provide specific solutions for key leaders and their departments across the enterprise from marketing to sales to finance to HR to procurement and more – can be used to help customers drive competitive advantages with SaaS.

IBM is building on its industry leading portfolio of SaaS products with a series of new SaaS applications that it announced today at Connect.

Attend the SaaS study session at Connect 2014 titled "Embracing SaaS: Strategies of Winning Organizations" at the Walt Disney World Swan Hotel – Toucan 1 & 2 room on Thursday, January 30 from 10:00 – 11:00am ET.

For more information or to download the full report visit ibm.com/ibmcai/saas

About the study
To gain a better understanding about how leaders are unlocking competitive advantage through SaaS, the IBM Center for Applied Insights conducted a survey of 879 IT and line-of-business decision makers in six countries globally, including Brazil, China, India, South Africa, the UK and U.S. Twenty-two percent of respondents are C-level executives (10 percent C-level IT and 12 percent in other C-suite roles). They work in enterprises of varying sizes – 20 percent with 10,000 or more employees and, at the other end of the spectrum, 40 percent with less than 2,500 employees.

About the IBM Center for Applied Insights
The IBM Center for Applied Insights introduces new ways of thinking, working and leading. Through evidence-based research, the Center arms leaders with pragmatic guidance and the case for change.

About IBM Cloud Computing
IBM is the global leader in cloud with an unmatched portfolio of open cloud solutions that help clients build, rent or tap into cloud capabilities.  IBM cloud supports 30 percent more top-level websites than any other cloud computing provider.  Among the Fortune 500, 24 of the top 25 companies rely on IBM cloud computing.   Through the first three quarters of 2013, IBM's quarterly revenue for cloud computing grew by 70 percent, reaching $1 billion (US) in the third quarter alone.   No other company has the ability to bring together unique industry knowledge and unmatched cloud capabilities, that have already helped more than 20,000 clients around the world. Today, IBM has more than 100 cloud SaaS solutions, 37,000 experts with deep industry knowledge helping clients transform and a network of more than 25 global cloud delivery centers.

Since 2007, IBM has invested more than $6 billion in acquisitions to accelerate its cloud initiatives. For more information about cloud offerings from IBM, visit http://www.ibm.com/smartcloud. Follow us on Twitter at @IBMcloud and on our blog at  http://www.thoughtsoncloud.com.  Join the conversation with #ibmcloud.

Footnotes:
1 The growth markets studied include Brazil, China, India and South Africa. Mature market countries studied include the United Kingdom and the United States. To smooth possible geographic distortions, responses were weighted based on IBM assessment of each country's total IT spend

Media Contact:
Nick Smith
IBM Communications
212-671-9653
[email protected]

 

Embracing SaaS: A Pacesetter Perspective.

 

Video with caption: "IBM study: Software as a service (SaaS) drives competitive advantage for top companies." Video available at: http://youtu.be/R9uSm7CB050

Image with caption: "Embracing SaaS: A Pacesetter Perspective." Image available at: http://photos.prnewswire.com/prnh/20140128/NY53454-INFO

SOURCE IBM

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
As enterprises around the world struggle with their digital transformation efforts, many are finding that innovative digital teams are moving much faster than their hidebound IT organizations. Rather than struggling to convince traditional IT to get with the digital program, executives are taking advice from IT research firm Gartner, and encouraging existing IT to continue in their desultory ways. However, many CIOs are realizing the dangers of following Gartner’s advice. The central challenge ...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
The pace of innovation, vendor lock-in, production sustainability, cost-effectiveness, and managing risk… In his session at 18th Cloud Expo, Dan Choquette, Founder of RackN, will discuss how CIOs are challenged finding the balance of finding the right tools, technology and operational model that serves the business the best. He will discuss how clouds, open source software and infrastructure solutions have benefits but also drawbacks and how workload and operational portability between vendors...
Cloud Object Storage is effectively infinitely scalable and boasts the lowest total costs. But cloud SLAs and T&Cs are traditionally optimized for huge customers like Netflix, so applications demanding better confidentiality or higher availability typically can’t reap the benefits of public cloud storage. In his session at 18th Cloud Expo, Don Martin, CTO of Security First Corp, will provide an overview of innovative technologies available today – secret sharing and information dispersal algori...
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
As the rapid adoption of containers continues, companies are finding that they lack the operational tools to understand the behavior of applications deployed in these containers, and how to identify issues in their application infrastructure. For example, how are multiple containers within an application impacting each other’s performance? If an application’s service is degraded, which container is to blame? In the case of an application outage, what was the root cause of the outage?
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT's direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
Cloud-based NCLC (No-code/low code) application builder platforms empower everyone in the organization to quickly build applications and executable processes that broaden access, deepen collaboration, and enhance transparency for all team members. Line of business owners (LOBO) and operations managers know best their part of the business and their processes. IT departments are beginning to leverage NCLC platforms to empower and enable LOBOs to lead the innovation, transform the organization, an...
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...