The Cloud Conundrum: Is SaaS Always Best?
Keywords: Cloud, Software-as-a-Service (SaaS), Multi-Tenant Software, Application Software, Perpetual License, Subscription Model, Supply Chain Network.
The topic of deploying application software via the Cloud is currently generating substantial attention in the enterprise software market. Multi-tenant applications in particular are being touted as market disruptors that can provide significant improvements in functionality, efficiency, and cost. However, there is a lot of confusion in the market about the Cloud, multi-tenant applications, and the sources of benefits from these options. This confusion makes it difficult for users to separate substance from hype to arrive at an informed decision relative to their particular needs.
ARC Advisory Group research shows wide differences in SaaS adoption levels across enterprise software markets. What cost/benefit trade-offs and functionality differences are behind this wide disparity in SaaS adoption? This Insight compares the characteristics of SaaS applications to on-premise applications, discusses strengths and weaknesses of the SaaS model, and presents a simple framework for analyzing and explaining the disparity in SaaS adoption across enterprise software markets.
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