BasicGov / BLOG

Very good interview in eweek by Renee Boucher Ferguson with Ann Winblad, a co-founding partner of Hummer Winblad Venture Partners about SaaS trends and its point of being beyond the tipping point of customer adoption.

“With SAAS no longer the domain of small companies that cant afford on-premises software implementations, users extend across a broad swath of small, midsize and enterprise companies, according to Winblad.And adoption is continually on the rise. Winblad points to several recent analyst reports to underscore her point: a survey by AMR Research that says 40 percent of companies are using hosted CRM (customer relationship management) applications, while 49 percent intend to use on-demand applications on an incremental basis; an IDC report that shows SAAS growing at 29 percent annually; and an Aberdeen Group report that said 70 percent of 631 companies surveyed are looking at or planning to use SAAS.”
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“Whats driving adoption of SAAS is the ability for customers to choose best-of-breed software and look at the way their businesses really operate, according to Winblad. “Thats why youre seeing new categories like spend management [that represent] business processes that can bring a very, very rapid ROI to a corporation,” she said.

Part 1: What is Software as a Service? An overview about Software-as-a-Service.

What is Software as a Service (SaaS), and why is this important for local and municipal governments? SaaS solutions are hosted software solutions that require only an internet connection and a browser. There is no need to install software on a server or on your local machine to use SaaS solutions – you just need to sign up for the service, and access it via the internet. You may have heard the terms ‘on-demand software’, ‘hosted software’, or ‘Cloud Computing’: these are all similar terms, requiring just an internet connection and a browser.

In a SaaS environment, it is not only the software that is hosted and accessed via the internet: data is hosted ‘in the cloud’ as well. When you access your SaaS solution and save your information it is stored in a remote location so that you can access it anywhere you have an internet connection.

Over the past few years, SaaS solutions have been developed for everything from word processing and spreadsheets, to replacements for traditional business and government software solutions. SaaS has many benefits over traditional in-house solutions, but there are many considerations for local and municipal governments to consider when selecting a software solution. Over the course of this series, we will review the key reasons local and municipal governments should consider SaaS solutions, as well as the key considerations that you should consider when selecting a SaaS solution.