SaaS Represents the Commoditization of Business Function


IT thought leader and Perficient Cloud Computing Practice Director JP Morgenthal examines the findings of the recently-released 4th Annual North Bridge relative to the commoditization of business processes as they are offered through a SaaS platform. As businesses accept that they can achieve the same goals with a less complex, highly-configurable SaaS item as they can with an expensive, high-overhead, licensed version of a particular business function, lower costs are a beneficial side-effect. At the same time, Morgenthal notes, IT executives are still willing to pay the high costs associated with enterprise applications if they deliver value. He says, “the SaaS effect we’re seeing in the market has more to do with SaaS vendors hitting the sweet spot regarding commodity business functions and less to do with businesses’ frustrations with their own internal IT or agility alone.”

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