In the past five months I have visited over 75 clients on three continents, not counting 32 individual meetings with CIOs and staff during our recent Gartner Symposium in Orlando. An interesting and recurring statement I am hearing from IT and business leaders is that, barring serious discounting, SaaS vendors are charging too much money for the business to convert their applications wholesale over to the Cloud model with these vendors.
Few IT leaders are rejecting SaaS as a delivery model. They like the idea, and hope that there are more case studies of high scalability with high transactional levels and real time integration/synchronization with legacy systems. But they are voicing reservations because they don’t see robust installations in key areas such as insurance claims, reservation systems, core banking, telecom call centers or government agencies. They are also beginning to plot the long-term costs of adding multiple component parts from a consortium of vendors in order to complete a solution.