SaaS not keeping customers happy, Gartner says

Customers are reporting disappointing experiences using Software as a Service, according to analysts.

SaaS

A new report from analysts Gartner may make uneasy reading for vendors offering Software as a Service (SaaS) packages, as that firm has found customers using SaaS didn't offer a "ringing endorsement".

In a recent survey, the analysts found that although SaaS was growing in popularity, customers were often underwhelmed by the experience. "Our research findings did not exactly provide a ringing endorsement of SaaS, in fact I would go as far as to say that satisfaction levels among SaaS users are little more than lukewarm," said Ben Pring, research vice president at Gartner.

"Although macroeconomic factors would seem to favor SaaS providers, almost two thirds of respondents said that they planned only to maintain their current levels of SaaS in the next two years."

The survey found that although roughly a third expected to increase their investments (32 per cent), just over half would maintain current levels and 10 per cent would either discontinue or decrease levels.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

Those firms that have elected to stick with more traditional systems cited the high cost of services, expected integration difficulties, and a lack of technical suitability for their decision to ignore SaaS.

UK enterprises were more disparaging about their real-world experiences than their US counterparts who most satisfied with provider responsiveness, functionality and general performance.

In the UK respondents were satisfied with support compliance and reliability, while both continents expressed disappointment with costs and integration issues. Gartner warned vendors that they must address these issues if they are to keep current customers happy and win new ones.

"At a time when SaaS is becoming more of a consideration for enterprises, the results of this survey will be somewhat disquieting for SaaS vendors," said Twiggy Lo, principal research analyst at Gartner.

"Underwhelming customer satisfaction scores, hesitation over the true cost of SaaS solutions, and concerns regarding how successfully SaaS applications can be integrated with other applications all point to issues that will need addressing and resolving."

Featured Resources

Report: The State of Software Security

This annual report explores important trends in software security

Download now

A fast guide to finding your cloud solution

One size doesn't fit all in the cloud, so how do you find the best option for your business?

Download now

Digitally perfecting the supply chain

How new technologies are being leveraged to transform the manufacturing supply chain

Download now

Small & Medium Business Trends Report

Insights from 2,000+ business owners and leaders worldwide

Download now
Advertisement

Most Popular

Visit/mobile/28299/how-to-use-chromecast-without-wi-fi
Mobile

How to use Chromecast without Wi-Fi

5 Feb 2020
Visit/hardware/354723/coronavirus-starts-to-take-its-toll-on-the-tech-industry
Hardware

Coronavirus starts to take its toll on the tech industry

6 Feb 2020
Visit/operating-systems/microsoft-windows/354739/windows-7-bug-blocks-users-from-shutting-down-their-pcs
Microsoft Windows

Windows 7 bug blocks users from shutting down their PCs

10 Feb 2020
Visit/in-depth/354726/sonos-speakers-are-environmentally-unsound
In-depth

Sonos speakers are environmentally unsound

9 Feb 2020