Bernard Lunn of The New York Times, recently wrote an article about whether enterprise businesses are keen to the idea of SaaS, or what is otherwise known as "cloud computing." He attended the Enterprise 2.0 Conference and asked the question "SaaS or on-premise"? The response he got was surprising – at least 50% of the vendors were still deploying on premises. Part of that mind-set, according to Mr. Lunn, is the fact that most enterprise businesses feel that the have better security controls if their IT infrastructure is on-premises. However dissolussioned this thought about security might be, it belays the point that people have an easier time dealing with tangible products and services, as opposed to abstract ones. I mean, no one could break into a network that is on-premises, right? The other deal-breaker for enterprise businesses, according to Mr. Lunn, deals with server capacity utilization. With all sorts of excess capacity, why is there a need to rent more space from a SaaS provider?
But, what brings enterprise businesses back in line is the fact that when the words "SaaS" and "cloud computing" are mentioned, VC wallets tend to become more generous. Most VC firms are seeing SaaS as the next big wave in the 2.0 world, and if a company wants to maximize their valuation, then they will want to get on board with this. So in one corner you have the traditionalists which say that SaaS really doesn’t streamline IT work centers, but in the other corner, there are the deep-pockets of investors, like VC firms, which say it is the "wave of the future." Who will win out, time will shortly tell.
To read more about this article, please click here: Why Enterprises Don’t Like SaaS