A/NZ IT Market Keen On SaaS Solutions Post-recession

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…

A/NZ ICT investment is forecast to bounce back slightly (+6.7%) in 2010, up from a 32 percent decline in 2009 the survey says. A welcome A$23 million is expected to be returned to the region’s ICT providers as a result.

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 SaaS (software as a service) or “on demand” applications gained significant share, and are now fimly in common acceptance. While the overall ICT investment market reduced, SaaS applications grabbed market share from their traditional application rivals.

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.

Looking to find out about the best business software, then visit www.iStart.com.au to search case studies, thought leadership articles and buyers guides on ERP, CRM, BI and eCommerce solutions relevant to your business.