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Posted by Tim DeGennaro on April 13, 2009
By Liz Herbert
Software-as-a-service (SaaS) continues its rapid growth — becoming an increasingly strategic part of firms’ application portfolios. Firms are using SaaS across a wide range of applications from CRM to ERP to IT, for deployments of all sizes, and across multiple geographies. As firms make heavier use of SaaS solutions, CIOs must ensure proper due diligence in the selection process. Although some SaaS still comes in through under the radar screen, business led deployments, centralized groups in IT, sourcing, and vendor management should take ownership of the research, purchasing, negotiations, and ongoing vendor relationships for these solutions.
Forrester suggests CIOs ensure the following considerations in SaaS sourcing:
SaaS vendors are evolving their contracts as well as physical infrastructure, security, and tools to keep up with the increasing buyer-side demand for enterprise-class solutions that can stand up to rigorous standards. Forrester has been seeing significant focus around clients bringing SaaS into formalized sourcing and vendor management groups who can oversee the all elements of the SaaS lifecycle — from selection to contract negotiation to ensuring ongoing value from the SaaS provider. As this trend continues, Forrester continues to help clients understand best practices for SaaS price negotiation levers, SaaS contract negotiations, and SaaS vendor management. This continues to be a significant topic of focus and will also be a key part of sessions and discussions at Forrester’s IT Forum.
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