Trends Report

SMB SaaS Adoption: Road Bumps Ahead In 2008

SaaS Marketers Will Face A Skeptical Early Majority

February 7th, 2008
MS
Michael Speyer
With contributors:
Eric Brown , Emily Van Metre

Summary

Software-as-a-service (SaaS) adoption by small and medium-size businesses (SMBs) increased by 58% to 15% from 2006 to 2007 as the market's early adopters flocked to the SaaS siren song of lower costs, quick deployment times, and mitigating IT staff constraints. But during that same period, non-users' skepticism widened, with increasing concerns about total cost of ownership (TCO), integration, security, and application performance. To ensure that SMB SaaS adoption glides smoothly into the early majority phase, marketers will need to address skeptics' concerns head-on. Marketers will need to clearly demonstrate the TCO advantages of SaaS, ensure that their products have well-defined data integration and conversion procedures, show price transparency, and have well-articulated security and data protection stories.

Want to read the full report?

Contact us to become a client

This report is available for individual purchase ($1495).

Forrester helps business and technology leaders use customer obsession to accelerate growth. That means empowering you to put the customer at the center of everything you do: your leadership strategy, and operations. Becoming a customer-obsessed organization requires change — it requires being bold. We give business and technology leaders the confidence to put bold into action, shaping and guiding how to navigate today's unprecedented change in order to succeed.