April 30, 2008
A new McKinsey report just released documents the paradigm shift evident in corporate IT. The survey canvassed 850 corporate software buyers and shows just how much attention on-demand is gaining in their minds.
- SaaS is rapidly becoming mainstream
- 75% are favourably disposed to utilising SaaS for development and deployment
- around 20% of this years software budget to be spent on SaaS (higher % for smaller businesses and lower for larger as expected)
McKinsey says the move to web apps creates an ascendency of platforms and splits these platforms into three distinct categories;
- development platforms (bungee labs, coghead etc etc)
- delivery platforms (EC2, S3 etc)
- app led platforms (force.com, intuit’s new offering)
Truth is that the survey doesn’t tell us anything new, corporate IT however is reluctant to jump into something without existing support and traction, this survey will ease their fears about SaaS/PaaS and most likely accelerate the trend.