Software Pulse

Business Strategy for Software Executives

September 22, 2009

Richard Levy

Weapons of SaaS Destruction

On-demand software must overcome three hurdles to improve enterprise adoption.

By Richard Levy, Mitratech

Though Software-as-a-Service (SaaS) has broken through and become accepted as a software delivery platform for many large enterprises, the rate of adoption is still pretty low. According to a Goldman Sachs study of IT spending, 39% of companies are not deploying any SaaS, while 43% are deploying less than 5% of their software through SaaS. What’s holding up the move to SaaS, especially in cases where the delivery model is clearly advantageous from an economic point of view?

The problem is that many IT managers sit in judgment of SaaS based on ideas that don’t necessarily hold up under scrutiny. When the SaaS option arises for an enterprise software project, they lob “weapons of SaaS destruction” at the concept until it dies and the world is kept safe for on-premises installation for the time being. In a lot of cases, this is an unfortunate outcome that on-demand vendors must work to overcome.


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David Scott LewisIndustry veteran David Scott Lewis presents his reasons why Linux is now ready for prime time in this post to his Blog, “Letter from China.”

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Publish Your Perspective! wants your opinions. Send your thoughts on the enterprise software industry to editor, Maryann Jones Thompson ( and have your opinions published on our site.

DON’T MISS: Why Business Needs an Annual Report for Technology

The IT organization and the business units should be much more in tune. Here's one way to make that happen. Read more in this article from The McKinsey Quarterly.

The Week in Review: In Red-Hot Pursuit

Oracle falls and rises; plus dazzles, Bing spreads, Exadata appears, Better Place connects, and more software news of the week. Read the Week in Review and get all the news stories that shaped the software industry over the past week.

Poll: Conquering Weapons of SaaS Destruction?

Which hurdles of enterprise SaaS deployment will be the most difficult to overcome?
Take our Pulse Poll >>

Last week, readers opined whethertoday’s strategies for success are any different from those of the past.
Give us your opinion and see the results >>

More at

Sun Micro Losing $100 Million a Month.
Read the most important enterprise software industry news of the week >>

Cloud management vendor Cloudkick received $750,000.
Monitor the latest software venture capital deals >>

Dell eyes services with $3.9 billion deal for Perot Systems.
Size up last week’s software M&A deals >>

SaaS vendor TradeBeam named Edward R. Flaherty as CEO.
See who’s made it to the top in our list of recent software executive appointments.

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Parting Thought

“People forget how fast you did a job, but they remember how well you did it.”
— Howard W. Newton

Courtesy of Malcolm Kusher, The Kushner Group


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