European organizations ready for software as a service, says IDC

COPENHAGEN – April 7, 2008 – In a recent IDC end-user survey of 2,077 IT decision makers in organizations with more than 20 employees in Western Europe, 37% of respondents said they would invest in software as a service (SaaS) in the next 24 months to replace or supplement the functionality of existing ERP solutions.

Regarding CRM solutions, 35% said they would replace or supplement existing solutions in 24 months; 32% said they would do so for supply chain management (SCM) solutions.

These positive and ambitious spending indications by Western European end users were not limited to a particular country or company size segment – they highlight a positive attitude across all segments. Large enterprises were most positive about ERP solutions, while for CRM solutions midsize companies lead in SaaS spending plans. By country, Spain and Italy are more bullish than the U.K., Germany, and France when it comes to SaaS.

"We were somewhat surprised that European end users are so positive when it comes to investing in business solutions delivered as a service," said Bo Lykkegaard, research director in IDC's European Enterprise Applications and Services program. "We believe SaaS spending will be directed at new applications and at replacement of broken applications, rather than at ripping and replacing working solutions. European organizations seek to leverage the SaaS delivery model to reduce risk, complexity, and upfront costs of new IT initiatives."

These findings are documented in a report series published by IDC:

– Western European Software-as-a-Service Attitudes and Plans, An IDC Survey, 2008 (IDC #LC02Q, January 2008)

– An End-User Perspective of the European ERP Market in 2008 (IDC #LC03Q, February 2008)

– An End-User Perspective of the European CRM Market in 2008 (IDC #LC04Q, March 2008)

– An End-User Perspective of the European SCM Market in 2008 (forthcoming)

To purchase these documents, please contact your local IDC office or visit www.idc.com .

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com .

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