21 Feb 2009

Businesses 'can survive' through SaaS adoption

Companies utilising software-as-a-service (SaaS) have a better chance of surviving the worldwide recession, a specialist asserts.

Peter Rowell, executive chairman at technology provider Regent Partners, believes the service offers companies a means of streamlining costs by offering monthly subscriptions which increase the need for capital expenditure.

Vendors with a steady revenue stream have a greater means of survival, he tells the Intellect Annual Regent Conference 2009.

"There are two technologies that have really benefited from the internet. The first is software delivery and we'll see very strong versions of SaaS. This is a combination of software, services and … solution and it's delivered via the internet with vast benefits to the user," Mr Rowell comments.

He believes initial expenditure may be costly to some companies but long-term benefits, such as increased prices when the business comes to be sold, outweigh the negatives.

SaaS offers firms greater value because web-based architecture is cheaper and more practical than on-premise software applications, according to Jeffrey Kaplan, managing director of IT solutions firm ThinkStrategies.