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SaaS, Cloud Computing Survey Identifies Five Key Findings

TMCnews Featured Article


December 08, 2011

SaaS, Cloud Computing Survey Identifies Five Key Findings

By David Sims, TMCnet Contributing Editor


Consulting firm ThinkStrategies, and MuleSoft, a cloud integration provider, have announced the top five findings from a recent study focused on the impact of integration on SaaS (News - Alert) and cloud vendors in the cloud computing market.


According to the survey’s findings, “integration is the most common hurdle in the sales process for SaaS/Cloud providers.” The study found that almost 90 percent of respondents considered integration to be “important” or “extremely important” in winning new customers.

SaaS/Cloud vendors also identified integration as the most time-consuming element of customer implementation process: “Nearly two-thirds of SaaS/Cloud vendors acknowledge that integration needs to be a critical part of their product, rather than leaving it to the end-user.”

“Strong subscriber and revenue growth rates” are carving out a strong position for VoIP in the U.S. telecommunications map, according to officials of Nationwide Telecom, who add that since the entry of Comcast (News - Alert) and other cable companies, “VoIP services are given good preference over other modes of telecom.”

In fact, the IP softswitch appears set to play a large part in the surge of hosted VoIP as well; a market Nationwide appears well-poised to serve.

Jeffrey M. Kaplan, Managing Director of THINKstrategies and Founder of the Cloud Computing Showplace, noted that the success of the first wave of SaaS/Cloud vendors “has sparked a 'Cloud Rush' affect which is attracting a proliferation of players to enter the market.” He observed that these range from fledgling start-ups to “the biggest vendors in the hardware, software and services industry.”

The research report identified five key findings on the impact of integration on SaaS/Cloud vendor success:

Integration is a key to winning new customers. Over eighty-eight percent of SaaS/Cloud vendor respondents view integration as either important or extremely important in winning new customers.

Integration need is widespread. A majority of SaaS/Cloud vendors (52.8 percent) say that more than half of their customers require integration.

Integration is the top barrier to new SaaS/Cloud sales. Almost eighty-eight percent (87.7 percent) of SaaS/Cloud companies identified integration as a common or very common sales hurdle.

Impact of integration on time-to-value. Integration is the most time-consuming element of customer implementation, with 79.3 percent of respondents saying that integration was highly time-consuming or somewhat time-consuming.

Integration is a critical component of SaaS offerings. About 62 percent of the SaaS/Cloud companies believe integration is a critical part of their offerings.


David Sims is a contributing editor for TMCnet. To read more of David’s articles, please visit his columnist page. He also blogs for TMCnet here.

Edited by Stefania Viscusi







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