SMBs Boost Interest In Software as a Service - InformationWeek

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1/14/2010
08:17 PM
Fredric Paul
Fredric Paul
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SMBs Boost Interest In Software as a Service

A new CompTIA survey of small and midsize businesses reveals growing interest SaaS and managed services.

A new CompTIA survey of small and midsize businesses reveals growing interest SaaS and managed services.The Third Annual SMB IT Spending Trends says almost 30% of SMBs no plan to implement SaaS solutions this year, up from 22% last year and just 14% in 2008. Similarly, 30% of SMBs say they intend to use managed services in 2010.

The move to outsourced technology solutions like SaaS and managed services isn't surprising, as 42% of SMBs don't even have a formal IT department. It also fits with SMBs ongoing need to conserve cash. Even though 70% of SMBs expected to grow revenue this year, they're still looking to control costs by keeping current IT systems in place as long as possible.

Where they are investing in IT, SMBs are looking for technologies "that are tied to instant return on investment," said Tim Herbert, vice president, research, CompTIA, in a statement. He added that "Between 70% and 80% of the SMBs we surveyed consider the usage of ERP, CRM and online e-commerce capabilities as strategic to their business, giving "business communication and customer outreach efforts" the highest priority.

However, SMBs are also concerned about integration issues when connecting SaaS and manageed services with their legacy systems, Herbert said.

The survey contacted 409 SMBs (businesses with 10-499 employees) in Q4 2009. Industries represented include manufacturing, finance and insurance, healthcare, government, and others.

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