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
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
Many banks and financial institutions are experimenting with containers in development environments, but when will they move into production? Containers are seen as the key to achieving the ultimate in information technology flexibility and agility. Containers work on both public and private clouds, and make it easy to build and deploy applications. The challenge for regulated industries is the cost and complexity of container security compliance. VM security compliance is already challenging, ...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
In the rush to compete in the digital age, a successful digital transformation is essential, but many organizations are setting themselves up for failure. There’s a common misconception that the process is just about technology, but it’s not. It’s about your business. It shouldn’t be treated as an isolated IT project; it should be driven by business needs with the committed involvement of a range of stakeholders.
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today BZ Media LLC has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and Commercial Drone markets.
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...