The context

The role of technology in enabling business strategy is increasing relentlessly showing no respect for internal barriers to change 

There are ever growing business pressures to launch new services quickly and to also continuously deliver rapid improvements 

As part of this, increasing levels and new forms of collaboration - within and across company boundaries - are driving the pace of business innovation

There are significant opportunities to enable strategy, growth and innovation through new SaaS developments, if they are thoughtfully and skilfully designed with legacy in mind

Enterprises and SaaS solution providers will be winners together by understanding the complexity of this integration and also driving innovation and new developments at pace

The Challenge

Customers, suppliers, partners and employees all expect Enterprise IT to be keeping up with consumer technology - the new status quo

Most current Enterprise SaaS solutions are cost focused - infrastructure and cross-industry (horizontal)

CIOs we speak with are looking for a greater range of SaaS solutions focused on value - the next generation of solutions will need to unlock value from enabling business innovation and growth which is company specific or for multiple players with similar processes (vertical)

However, 60% of CIOs are concerned that SaaS solution providers do not appreciate the complexity of legacy IT systems and integration and do not offer the breadth or depth CIOs need*

Most CIOs have been working with SaaS for less than two years* and are starting to recognise the need to move to a services aggregator approach to IT

CIO organisations will have to make step changes in their internal capabilities to align and manage IT in this new world

*NTT Communications research June 2013