socialmedian: Why Enterprises Don't Like SaaS

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Why Enterprises Don't Like SaaS

Source: ReadWriteWeb

Jun 26, 2009

Summary

At the Enterprise 2.0 Conference, I asked all of the vendors, "SaaS or on-premise?" The assumption, because this conference was all about modern 2.0 stuff, was that everyone would say, "SaaS, of course."

Wrong. At least 50% of the vendors were deploying primarily on premise. Even some of the pure SaaS crowd would admit to an occasional on-premise deployment. Anecdotally, even some of those who say they are pure SaaS will deploy on premise quietly. Why are enterprise customers telling vendors that they want on-premise deployment?

Sponsor

On-Premise Does Not Mean Old-Fashioned

Some of the vendors selling on-premise solutions are bang-on up to date in the two ways that really matter:

Low-priced monthly subscription pricing with freemium entry,

Grassroots adoption, one click at a time, based on usability as the core advantage.

For example, Atlassian sells only on-premise.

Those Old IT Worry-Warts

There are some red herring issues. For example, security. There is no reason that cloud-based systems should be less secure than on-premise ones. But some high-profile lapses

...Read the full article

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