As the economy finally starts to look up, cloud adoption has become inevitable, according to writer Roy Wang in a recent Forbes blog post. Businesses of all sizes are no longer trying to decide when to embrace cloud computing, they are now planning how to most effectively do so. In fact, most new procurement plans will be replaced with cloud strategies this year, he predicts.
A New View of SaaS
Besides the financial climate, what’s changed? For starters, companies are now assessing cloud solutions from a value perspective (as opposed to a more cost-oriented one), and viewing them as more strategic initiatives, instead of tactical ones.
Customers Speak Up
There is also the factor of increasing competition among SaaS vendors. The intensifying battle to win market share has put customers in the driver’s seat, and as a result, providers are under great pressure to minimize total cost of ownership (TCO). Additionally, economies of scale and decreasing hardware costs have also made cloud solutions more affordable.
Innovation plays a major role here too. The very nature of the SaaS model makes it easier to innovate, and Wang believes that in the future, leading-edge functionality will arrive via cloud solutions first. In fact, he claims, they may never appear in their on-premise counterparts at all. He also states that cloud solutions will deliver the optimization savings that will enable companies to pay for those future innovations.
Once considered a less expensive deployment option for small and mid-sized businesses, the cloud is now gaining traction as a key IT strategy within companies of all types and sizes. And while the profile of those adopting SaaS may be changing, the primary drivers behind that adoption will likely continue to be the same – time to value, ease of use, and functionality.