By 2010, at least one IT Project and Portfolio Management (PPM) leader will emerge with a mid-market focus, largely by featuring a strong Software as a Service (SaaS) offering. This is according to Gartner's "Magic Quadrant for IT Project and Portfolio Management Applications" report, which states that recent investor activity in the mid-market for providers of hosted SaaS solutions (as well as installed solutions) is justified.
In addition, another Gartner report published last year, asserts that: "Organisations unable to support or afford a large-enterprise project and portfolio management implementation should consider the software-as-a-service or on-demand (aka "application service provider") option as a possible alternative to making a long-term commitment to a large-enterprise PPM vendor."
Thus, it is safe to say that the concept of SaaS is coming of age within the PPM space, making serious inroads into a field currently dominated by larger, more traditional software providers as businesses grow increasingly comfortable with the notion of not purchasing software outright, but instead, storing data on a server run by a third party where software can now be built, delivered, administered and used for a monthly fee.
Gaining popularity in the late 1990s and early 2000s, SaaS came into being under the guise of the Application Service Provider (ASP) model, marking an attempt at providing applications that are more broadly affordable, easier to use and easier to administer. More recently however, specifically with Internet access becoming more pervasive in most businesses, players within this market space have moved to a more "on demand" model resulting in a growing drive to consider SaaS options, specifically within the PPM space.
Most businesses and project offices are under pressure to deliver projects to spur on growth, so companies need a project management system to be put in place quickly in order to manage these projects as effectively as possible. Instead of wasting time researching and selecting a tool and then having to train users, SaaS presents an option for companies that is available within a much shorter timeframe than traditional software - interested parties can generally assess and order online, increasing the chances of successfully completing projects within the time stipulated.
Not only is SaaS replacing the more expensive, highly complex and difficult-to-use software products available for PPM, but it allows users to utilise enterprise level products with far less risk and at a lower cost. It is also highly flexible - as a rental agreement, it allows companies to easily justify expenditure and also provides flexibility for future projects, allowing them to procure now for a low upfront investment while remaining adaptable as requirements change.
Looking at a normal software licensing agreement, an organisation that uses only 80 of 100 licences purchased will have to pay for all 100 regardless. Businesses may also find that there are some functionalities purchased that are not used. SaaS works across multiple environments and is easily scaled up, and more importantly in some cases, down.
SaaS shifts the power traditionally held by software vendors to tie users into long-term, inflexible contracts to the user and enables them to hold the vendor accountable. Additionally, this concept offers the business user software without reliance on an IT department or millions of Rands, key considerations for smaller companies.
Share