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Security First, Software-as-a-Service Second
In a recent blog post, we advocated the adoption of the PCI Data Security Standard by SaaS service providers. From recent CIO surveys, it is clear that enterprises are placing high priority on Security. In fact, Security features much more prominently than implementing SaaS, which bodes well for careful consideration of privacy and security concerns in the cloud-computing world (including the potential adoption of a security standard for SaaS providers):
1. In a Morgan Stanley CIO Survey (June 2008) SaaS/OnDemand is the lowest spending priority listed with 3% of votes as compared to 23% voting for Security as a top spending priority. A similar survey by Merrill Lynch (June 2008) found that Security is the Top 1 spending priority (36% of votes). The Top 2 spending priority – integration – received 16% of votes. SaaS did not make the Top 10.
2. While 50% of CIO’s in a Merrill Lynch survey (June 2008) cite some use of SaaS technology (growing to 72% in 3 years), only 4% of software functionality is delivered as SaaS, projected to be 12% in three years. Compare this to virtualization, another hot technology: 73% of CIO’s use some virtualization, adding up to 17% of total capacity today, growing to 50% in 3 years.
3. Co-incidentally, SaaS is one of the first technologies to be cut according to the Merrill Lynch June 2008 survey. When asked “if you had to defer spending due to the soft economy, how do you prioritize spending”: virtualization would still receive an INCREASE of 71% in spending, whereas SaaS/OnDemand will see a DECREASE of 20%.
Posted July 07, 2008 in | Permalink
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