Software-as-a-Service providers are in keen demand post-GFC as organisations look to control costs. iStart’s fifth annual Investment Intentions Survey shows that almost two-out-of-three companies are now using SaaS applications – up from a half a year ago…

ICT investment in A/NZ is predicted to improve slightly (+6.7%) in 2010, bouncing back from a 32 percent drop in 2009 according to the survey. This equates to an estimated A$23 million recovery in revenue for the region’s ICT vendors.

The 400 organisations responding to the survey represent a A$373 million share of Australasia’s estimated A$5.0 billion ICT investment market.

Uptake of Software as a Service (SaaS) or “on demand” applications showed a significant gain in share, and are now firmly in mainstream acceptance. In a reduced overall ICT investment market, SaaS applications have grabbed market share from the traditional application providers.

CRM, eMail and Web hosting/content management leading the SaaS application race, although increased usage was seen across all SaaS categories (ERP, CRM, BI, eMarketing), with one exception – eMail hosting – which dropped from 13% to 11% of businesses – most likely due to larger organisations represented in this year’s results.

GM of iStart, Hayden McCall, said that while the increase looked positive, it is up from a low base.

In publishing the results, McCall commented “the question is whether spend will ever fully recover to pre-recession levels, or whether intense competition, ‘right-sizing’ of solutions and SaaS uptake mean lower investment levels are here to stay.”

If readers are considering a technology investment, iStart ‘technology in business’ research portals (ref www.iStart.co.nz or www.istart.com.au) are the place to go with hundreds of case studies on business technology such as financial packages, manufacturing solutions, ERP, CRM and BI across A/NZ and buyers guides for the leading solution providers.

Click here to read the full version of the Survey.

Learn more about the productivity gains possible from investment in technology solutions. The iStart site is where you can research ERP software and what it can do for you. Check here for free reprint licence: A/NZ IT Market Keen On SaaS Solutions Post-recession.

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