As you may have seen in our first or second Twitter Poll blog recap earlier this week, the Zylo team consulted Twitter to pose some general questions of IT Procurement leaders. We targeted individuals with an interest in SaaS and software to gain the most accurate results. We used Twitter Polls to ask 3 questions over the course of one week. Each Twitter Poll was live for 24 hours before the results were finalized.
In this post, we’ll examine the third and final question asked, the poll results, and Zylo’s take on the responses.
Question #3: What percentage of your software spend is in the Cloud today?
Results: 153 votes
- 0% – 30% – 39%
- 31% – 60% – 16%
- 61% – 90% – 21%
- 90% & above – 24%
In the final Twitter Poll, we asked what percentage of software spend is in the Cloud today, and IT Procurement leaders flooded the Poll with over 150 responses in 24 hours. 45% of respondents noted that at least 61% of their software spend is in the Cloud, with 24% of those respondents indicating at least 90% of their spend is in the Cloud today. Similarly to our first Twitter Poll question, we believe that this response likely indicates the size and demographics of the company.
Take for instance this staggering statistic from a recent Gartner report:
“Cloud application services (SaaS) is forecast to grow 20.3 percent in 2016, to $37.7 billion. As software vendors shift their business models from on-premises licensed software to public cloud-based offerings, this trend will continue.”
A recent report put together by Software Advice analyzed market trends to show that more companies than ever are moving to cloud. The report surveyed a number of businesses on their preferences for on-premise versus cloud software deployment. They found preferences have shifted dramatically between 2008 and 2014. In 2008, 88% of the companies surveyed preferred on-premise deployment. By 2014, that preference had completely reversed and 87% of companies now prefer cloud deployment.
With those statistics in mind, organizations that haven’t already begun the shift to SaaS or cloud-based technologies will likely be left behind. How does your organization stack up to this response? Are you among those that are leading the Subscription Economy or have you recently taken over IT Procurement at your organization to lead the strategic shift to SaaS?
In order to succeed in this new cloud-driven era, IT Procurement needs a way to fully understand an organization’s spend, utilization, and employee sentiment as it relates to SaaS subscriptions. Simply put, the end goal of IT Procurement is to understand all of IT, including SaaS, cloud-based software, and subscription software. Visibility and cost optimization are top of mind for IT Procurement leaders.
Interested in learning more about how to be innovative with cloud software in your organization? Download Zylo’s latest resource, “How The Cloud Shift Can Drive IT Procurement Strategy” for insight on how to be proactive and drive strategy.
Also, check out these blog posts for more resources on SaaS:
The SaaS Landscape Is Changing Procurement Forever. Here’s Why:
“Buyers” Move Over. Why The Subscription Economy Is The Future.
