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June 9, 2008

No to SaaS?

Filed under: Data Integration — Alena Semeshko @ 3:52 am

According to the recent Forrester research survey, there are top 8 reasons why companies say “No Thanks” to SaaS. The 8 include:

66% Integration issues
well, duuh, select a trusted vendor, who won’t let you face these issues.

61% Total cost of ownership concerns
yes, quality actually costs money. what’s wrong with that?

55% Lack of customization
mm..ask and you shall be granted…The problem I’m seeing with all these “excuses” is that these people never even looked into the SaaS market out there. They are just repeating the romours and scarry stories they heard somewhere else (perhaps from the same hypocrites that don’t even know a single reliable SaaS vendor).

50% Security concerns
…not gonna repeat it.

42% “We can’t find the specific application we need”
ever tried asking?

39% Complicated pricing models
possible, but again, depends on the vendor.

39% Application performance
well, you’re the one selecting your applications. Make sure they work right from the very beginning.

34% “We’re locked in with our current vendor”
ok, that’s a sound enough excuse.


  1. Whether we like it or not, there is still an aversion to SaaS by some companies. I agree with you that many of the concerns of companies are illegitimate, but they are concerns that the SaaS world must address…I know these issues will be addressed eventually. In fact, I think the next wave in SaaS surrounds companies that support SaaS vendors and allow them to improve their services and mitigate the 8 concerns of companies. One company that is filling this space and helping SaaS providers improve is eVapt ( You should check eVapt out. I would love for you to blog on the future of SaaS and how SaaS can overcome these concerns of business!!!

    Comment by Landon Hoover — June 9, 2008 @ 7:06 am

  2. […] is the number-one reason companies give when asked why they’re not using SaaS. But Semeshko dismisses this concern, writing, “Well, duuh, select a trusted vendor, who won’t let you face these issues.” Keep in mind, […]

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  3. […] posted some results of the recent Forrester survey about it not long ago. It showed 66% of companies being […]

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