32% of Indian SaaS adopters replace on-premise applications |
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By SearchCIO.in Staff
21 Jan 2010 | SearchCIO.in |
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According to the latest "Software-as-a-Service
in India 2009/2010" report from Springboard Research, Software as a
Service (SaaS) applications are gaining acceptance in India, with 32%
of SaaS adopters replacing an on-premise application in 2009-10. The
survey also reveals that 22% of organizations using an on-premise
application have chosen to adopt the same application's SaaS version in
another geography or department within the organization.
Springboard estimates that the Indian SaaS market, valued at US$105
million in 2009, will be worth US$352 million by 2012. It's likely to
register a growth of 60% CAGR from 2008 to 2012. The bulletin also
discloses that India is the fastest growing SaaS market in Asia
Pacific. The insights in the research bulletin are gained from a survey
of 121 CIOs and IT managers of large, medium and small enterprises in
India.
According to the report, zero or low maintenance is one of the major
reasons for SaaS
adoption in India, followed by ease of use. Among SaaS vendors,
Salesforce.com, Citrix Online and Cisco WebEx have a strong hold over
the market. The report observes that SaaS has been adopted by
enterprises within verticals like power, infrastructure, contact
centers, banking and technology.
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Among the respondents who did quantify SaaS-related savings, email had an astonishing 127% return on investment.
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"The momentum generated by vendor activity, participation by telecom
companies as partners, and the hype around cloud computing will help
SaaS proliferate rapidly over the next 18-24 months in top-tier cities
and secondary places," says Balaka Baruah Aggarwal, the senior research
manager for emerging software at Springboard Research. "The
recessionary conditions represent a significant opportunity for vendors
to market the low
TCO associated with SaaS, as they attempt to migrate users from on
premise software applications, as well as sell to first time IT users,"
adds Michael Barnes, the vice president of software research at
Springboard Research.
In terms of satisfaction, SaaS scored an average of 8 on a 10 point
scale. Among applications,
email scored the highest with 9.5, while ERP generated a comparatively
low level of satisfaction at 7.6. Among the respondents who did
quantify SaaS-related savings, email had an astonishing 127% return on
investment.
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