February 20, 2009

Software-As-A-Service Adoption Expands

Sourcing Executives Must Be Ready To Support New SaaS Purchases

by Liz Herbert

with Christine Ferrusi Ross, Philipp Karcher

Executive Summary (This is a document excerpt)

Forrester recently surveyed 239 application software decision-makers and found that SaaS adoption continued to grow, even in the face of the current bleak economic conditions. Beyond the general increase in SaaS, Forrester also found that SaaS usage is spreading to a growing range of applications, far beyond its early roots where it was concentrated most heavily in human resources (HR) and customer resource management (CRM) applications. This continued growth means that sourcing executives and vendor managers must make sure that they are staying ahead of the trend and understand what to consider in SaaS pricing and licensing, contracts, and ongoing vendor management.

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