Gartner Research

Survey Analysis: SaaS Migration Findings Show How to Maximize the Benefit When Switching to SaaS

Published: 11 April 2016

ID: G00298318

Analyst(s): Lori Samolsky, Dawn Hubbard , Alexa Bona, Jo Liversidge

Summary

Organizations are migrating applications from on-premises to SaaS and from SaaS to SaaS. However, the concessions being achieved are not optimal from a cost perspective. Technology procurement leaders should use this note to focus migration negotiations and maximize benefits.

Table Of Contents

Survey Objective

Data Insights

  • SaaS Adoption Is Strong
  • Many Functional Areas Have Moved to SaaS
  • ERP/Manufacturing and Operations Least Likely to Generate Maintenance Reductions or License Credits If Staying With the Same Vendor
  • Training Costs Most Significant Switching Costs, Followed by Costs for Migrating and Cleaning Data and Implementation Costs When Migrating to SaaS
  • Smaller Organizations Spend the Most on Data Migration and Cleaning
  • Largest Organizations Spend the Most on Training
  • Integration Costs Vary Depending on Organization Size
  • Implementation of Cloud Capability and Process Change Costs Show Some Variations
  • Return on Investment From SaaS Migrations May Be Aspirational
  • Shorter Contracts Pose Potential Risks
  • Methodology

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