Асоціація підприємств інформаційних технологій України

Analysts Warn Against Basing SaaS Deployment Decisions on Unproven Theories

STAMFORD, Conn., February 19, 2009 — The rise in popularity of the software-as-a-service (SaaS) delivery model has resulted in a number of assumptions about this emerging model, but it has been difficult for many companies to separate truth from fiction, according to Gartner, Inc. Gartner analysts have examined the top-five assumptions to provide a bit of a reality check on the state of the SaaS industry.

“In recent years there has been a great deal of hype around SaaS,” said Robert DeSisto, vice president and distinguished analyst at Gartner. “As a result, a great number of assumptions have been made by users, some positive, some negative, and some more accurate than others. The concern is that some companies are actually deploying SaaS solutions, based on these false assumptions.”

Gartner has taken the top-five assumptions that users make and provided a fact check on their accuracy.

Assumption 1 — SaaS is less expensive than on-premises software.

Fact Check: True during the first two years but may not be for a five-year TCO. SaaS applications will have lower total cost of ownership (TCO) for the first two years because SaaS applications do not require large capital investment for licenses or support infrastructure. However, in the third year and beyond, an on-premises deployment can become less expensive from an accounting perspective as the capital assets used for the on-premises deployment depreciate.

Assumption 2 — SaaS is faster to implement than on-premises software.

Today, IBM (NYSE: IBM) announced it is working with six universities to leverage IBM Blue Cloud solutions to speed up projects and research initiatives that were once constrained by time, limited or unavailable resources, or overloaded IT systems.

• The Qatar Cloud Computing Initiative, driven by three universities, will open its cloud infrastructure to local businesses and industries to test applications and complete various projects, including seismic modeling and the exploration for oil and gas.
• Another university, the University of Pretoria, is using cloud computing to test the development of drugs to slow the progression of serious illnesses in Africa.
• In addition, IBM is also working with The Higher Education Alliance for Leadership Through Health (HEALTH Alliance) in East Africa and Kyushu University in Fukuoka, Japan to use cloud computing.

Carnegie Mellon University in Qatar, Qatar University, Texas A&M University at Qatar

One of the first projects to bring cloud computing to the Middle East, the Qatar Cloud Computing Initiative, is operational and initially located at Carnegie Mellon University in Qatar. Carnegie Mellon University in Qatar, Qatar University, and Texas A&M University at Qatar will collaborate on this environment, along with a community of industry experts, researchers and clients, to develop a cloud solution to help solve industry problems.