Logistics technology: Forrester report indicates SaaS not part of future plans for records management
While SaaS remains popular in many supply chain functions, don't expect it to take off in records management anytime soon, according to a new Forrester survey
Staff -- Logistics Management, 10/29/2009
CAMBRIDGE, Mass.-Software-as-a-service (SaaS) may be on the cutting edge of transportation management systems, sourcing and procurement and other supply chain-related functions, but according to a new report from Forrester Research, the technology's future is uncertain in the records management field.
Forrester Senior Analyst Brian Hill's report, released last week, presents the results of a survey that Forrester, in conjunction with ARMA International, sent out to more than 400 records management decision-makers. The results all indicate a downward slope in demand for SaaS and related hosted software products in 2010.
According to the report, 90 percent of the respondents said they were not planning to expand or implement new SaaS or hosted software in 2010.
When asked why, the most respondents (37 percent) said unfamiliarity with SaaS or hosted software was the biggest reason. Also of concern were potential security, operational, privacy, and legal concerns.
Even for those who did say they would be investing in SaaS or hosted software in 2010, just how much will be spent still seems to be up in the air. When asked, 60 percent of the respondents didn't know how much money would be allotted to these initiatives in 2010, and only 2 percent were planning to spend $250,000 to $500,000.
And even those already using SaaS were not singing its praises. Out of the 47 people surveyed who use SaaS or hosted software in records management, only 51 percent indicated they were satisfied with their current setup. In total, that figure is made up of 30 percent who were "very satisfied," and 21 percent who were merely "satisfied."
As to why the respondents felt this way, the report indicated the respondents fear the human factor is not involved enough when hosted software or SaaS is used to gather data.
"Key shortcomings come from insufficient attention to discipline and process aspects," Hill wrote in the report. "Technology alone won't translate to success with compliance and legal risk mitigation objectives."
So if it's so unpopular, why use SaaS for records management at all? The survey asked those who are planning to implement SaaS or hosted software why they were doing it, and the two most popular answers to the multiple-response question were lower cost of ownership (48 percent) and ease and speed of deployment (45 percent).
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