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Lack of investment in SaaS 'could prolong downturn'

8th June 2009

The financial downturn could be prolonged for small businesses not investing in cutting edge technology such as software-as-a-service (SaaS), a new report has highlighted.

Ardent Solutions, a consultancy looking into the IT-related issues now affecting companies in the current climate, found many have budget limitations which are restricting their long-term performance, Computing reported.

Andrew Watkinson, the managing director of Ardent, said that small and medium-sized enterprises "cannot afford to be left behind".

He explained that many are moving towards external sources for IT expertise in maintenance, support, advice and outsourcing - something the expert agrees with.

Mr Watkinson continued: "Making the move to SaaS is the logical next step: in addition to the cost arguments, this model provides organisations with guaranteed access to the latest technologies and up to date expertise."

Last week, research by recruitment company Harvey Nash highlighted the need for chief information officers to fight for a bigger budget in order to secure a better quality of technology, so long as they explained its usefulness to investors and board members.

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Centennial Software was acquired by FrontRange Solutions (www.frontrange.com) in April 2008. FrontRange Solutions develops Service Management, IT Infrastructure and Customer Relationship Management solutions that scale with the needs of mid-sized and distributed enterprises. The company – through its FrontRange, HEAT, GoldMine, Enteo and Centennial brands – offers a unique portfolio that has been chosen by more than 150,000 organizations worldwide to help improve the effectiveness and reduce the cost of interacting with external and internal customers.

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