Cloud Computing model SaaS provides acelarated powerful competitive advantage with in differeant industrial level- report by IBM

1. How SaaS Provides Competitive
Advantage To Industries?
-IBM survey report on Champions of Software as a Service.

2. SaaS (Software as a Services)
Software as a Service (SaaS) is a software delivery and
licensing model in which the software is licensed on a
subscription basis and is hosted centrally.
The use of SaaS (Software as a Service) has escalated over
the last few years and shows no trace of slowing down.
The worldwide market is expected to grow from US $18.2
billion in 2012 to US $45.6 billion in 2017. (Gartner)
SaaS In Industries

3. What’s Driving SaaS On Demand?
Around 800 companies surveyed by IBM, reduced total cost of
ownership (TCO) of their applications was the top reason to
adopt SaaS.
41% companies actually reached higher degree of their goal.
47% are using SaaS to attain a broad range of benefits that
deliver significant competitive advantage.
Leading companies are leveraging SaaS in transformative ways.

4. Understanding The SaaS Users
To learn more about how SaaS is helping companies gain
competitive advantage as opposed to simply reducing
costs, IBM survey respondents into three groups:
• Pacesetters: Who have the highest level of SaaS adoption
and are gaining competitive advantage through their broad
efforts.
• Challengers: Who have adopted SaaS more narrowly but
are gaining competitive advantage through the SaaS
deployments they do have.
• Chasers: Who have been slower to adopt SaaS and gain
competitive advantage through its use.

5. Profiling SaaS Adopters

6. Understanding The SaaS Users
One noticeable difference between Pacesetters and those
lagging behind is what leads them to turn to SaaS in the top
place. Chasers and Challengers are primarily motivated by
reduce TCO, with boosting applications agility.
Pacesetters, are mainly driven by the desire to use SaaS in
order to build improve collaboration throughout the
organizational ecosystem. This also improves customer
experience.

7. Strategizing And Functioning
As a Team
A popular belief is that SaaS – with its ease of purchase and
deployment – requires little involvement from IT organizations.
But that’s not the case for Pacesetters, who attest to strong
collaboration between line of business (LOB) and IT on matters
ranging from directing to securing SaaS solutions.

8. Strategizing And Functioning As a Team
The Power of
collaboration
Fostering strategic
partnerships

9. Enterprise Efficiency: Streamlining
Their Approach
Across the board, Pacesetters excel in achieving outcomes
through SaaS – often starting with improved efficiency.
66% Pacesetter find that SaaS improves application agility,
making the deployment and implementation easy and
flexible.
Three-quarters of Pacesetters have significantly improved
self-service capabilities through their SaaS deployments,
while Chasers with just 26% realizing this outcome. More
broadly, 70% are optimizing business processes and
workflows with SaaS, versus 31% of Chasers.

10. Gaining Competitive Advantage
Pacesetters are achieving impressive benefits in
enterprise efficiency through SaaS.
However, they are also discovering how SaaS
can help them unlock competitive advantage –
most notably through increased internal and
external collaboration, faster and better
decision making with good market agility.

11. Deeper Collaboration: Working
Together To Work Smarter
Given the strong IT and LOB partnerships
found among Pacesetters, it is not surprising
that they are highly enthusiastic about using
SaaS to drive broader collaboration across
their organizations and throughout the
ecosystems.
Interestingly, Pacesetters put social tools at
the top of their most-favored SaaS
applications. It is a key way that Pacesetters
are enabling individuals and teams alike to
quickly tap the right talent for a given need,
no matter where in the business ecosystem is
it located.
By doing so, SaaS helps to open companies up
to new perspectives, fresh approaches and
faster results.

12. Better Decision Making: Using Big
Data To Make Big Moves
Pacesetters use SaaS to leverage analytics and
gain insights from large masses of data, while
barely a third of chasers take advantage of
those capabilities. That same proportion of
Pacesetters improves decision making with
SaaS – compared to just 28% of Chasers.
By generating new insights from big data, they
are able to make faster, accurate decisions and
ultimately achieve competitive advantage.

13. Market Agility: Moving At The Speed
Of Change
66% of Pacesetters are increasing
innovation through SaaS, enabling them to
bring new or improved products to market.
Moreover, 71% are employing SaaS to
shorten their time to market.
Ultimately, 68% use it to improve the
customer experience.
By every measure, SaaS is enabling its top
practitioners to respond more effectively to
fast-breaking challenges and opportunities
and in the process, find whole new routes
to market success.

14. Driving Your Own Competitive Advantage
Through SaaS
As demonstrated by the Pacesetters, SaaS can provide the enterprise a
wide range of benefits. It can reduce costs, engender rich and far-reaching
collaborations and make customer-focused and agile in the marketplace.

15. SaaS Competitive Advantage Summary Table

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18. References
1. Wikipedia.org
2. Gartner Forecast: Public Cloud Services, Worldwide 2011-2017. Ed Anderson, Lai-
ling Lam, Yanna Dharmasthira et al. 4Q13 Update. December 26, 2013.
3. IBM Reports
a. Under cloud cover: How leaders are accelerating competitive differentiation
b. Champions of Software as a Service: How SaaS Provide powerful competitive
advantage