We recently held a webinar on the topic of technology differences in the selection of treasury management, and a couple of interesting stats came up.
One of the questions we asked the audience was “What do you view as the #1 benefit of cloud software?” By a significant majority, the two biggest response highlighted cloud’s ease of use. In fact, almost half of all respondents (44%), said that not needing internal resources to support the system is their number one benefit. A quarter of respondents said that all updates being free and automatic for all users is the key benefit for them. Combined, a full 69% view the overall enhaced user experience is the top benefit of cloud software.
In spite of these benefits, few companies mandate their business units to implement cloud solutions, and only one in seven have a preference for cloud / SaaS. In fact, almost half of corporate IT departments have no stated preference for cloud or installed software.
This position from IT will probably change, as IT looks to focus more on strategic infrastructure projects, instead of supporting apps. Even if it doesn’t, SaaS is expected to overtake installed software in the next few years. Global SaaS software revenues are forecasted to reach $106bn in 2016, increasing 21% over projected 2015 spending levels. Recent research from Goldman Sachs projects that spending on cloud computing infrastructure and platforms will grow at a 30% CAGR from 2013 through 2018 compared with 5% growth for the overall enterprise IT.
If you’re thinking of implementing a new TMS and are not sure what type of software to use, check out our brand new guide, SaaS and Cloud: Beware of the Wolf in Sheep’s Clothing.
What do you view as the #1 benefit of cloud software?
44% – No need for internal IT resources to support it
25% – Free upgrades / always on latest version
18% – Lower / more predictable cost
12% – More secure than installed software
2% – Other
Does your company have a policy for cloud vs installed software?
49% – No preference for one or the other
21% – No, but we are encouraged to use installed software
14% – No, but we are encouraged to use cloud / SaaS
12% – Yes, we must always use installed software
5% – Yes, we must always use cloud / SaaS