Is the Software as a Service Experiment Finally Over?

Recent Gartner research suggests that the trend toward software as a service (SaaS) may be drawing to an end. Between 2008 and 2009, the percentage of their budgets that enterprises spent on SaaS offerings grew only 0.6 percent. That led Gartner analysts to proclaim that SaaS “will have a role in the future of IT, but not the dominant future that was first thought.”

Why not? Some customers are discovering that while SaaS might save money in the short term, it’s usually not worth it in the long term. In addition, customers worry about the availability and reliability of SaaS, particularly for mission-critical applications.

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