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Smaller Businesses Embracing SaaS Print E-mail
Tuesday, 19 January 2010

By Mel Duvall

Small and mid-sized businesses (SMBs) are becoming more sophisticated in how they are embracing software-as-a-service offerings and managed services, according to a survey by CompTIA, an IT industry association.

In a survey of more than 400 companies across the U.S., CompTIA found that nearly 30 percent are planning to implement SaaS offerings in 2010, a sizable jump from the 22 percent saying they would do so in 2009, and the 14 percent reported in 2008.

The managed services model is particularly useful to SMBs, as nearly 42 percent reported they do not have a formal IT department. The CompTIA survey also indicated SMBs are placing an increasing importance on technology offerings that drive revenues, produce immediate results to the bottom line, and have a direct positive impact on the customer's experience.

"Between 70 percent and 80 percent of the SMBs we surveyed consider the usage of ERP, CRM and online e-commerce capabilities as strategic to their business," said Tim Herbert, CompTIA VP of research, in a statement. "IT solutions that are tied to instant return on investment in business communication and customer outreach efforts have the highest likelihood of adoption."

At the same time, SMBs are looking to "stretch their buck" by making better use of existing technologies, people and budgets. While SMBs are upbeat about business prospects in 2010 -- with seven in ten expecting revenue growth -- they also expressed a desire to keep current IT systems operational for a longer timeframe.

"Technology providers may be well advised to approach SMBs with either new IT solutions that represent low perceived risk or replacement solutions that positively impact productivity and efficiency," Herbert said. "There's also an opportunity to provide ongoing maintenance services to help SMBs better manage their IT systems under current business conditions."

Other findings from the survey:

  • CompTIA asked SMBs what core values they look for in a technology provider. Eighty-six percent said they demand partners that truly understand their business needs; and 83 percent want partners who are able to provide scalable solutions.
  • The inability to integrate existing legacy systems and services with emerging technologies was seen as a consistent source of frustration.



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