Large companies are buying in to the idea of software-as-a-service (SaaS) according to a new survey of CIOs by management consultants McKinsey & Company as Salesforce.com and Microsoft make new SaaS gambits.
The survey found that 61% of North American companies with sales over $1 billion plan to adopt one or more SaaS applications over the next year, a dramatic increase from the 38% who were planning to install SaaS apps in 2005.
CIOs are attracted by SaaS’s lower up-front costs, lower total ownership costs, and faster implementation than traditional licensed software.
