ReportsnReports:Are Hosted and SaaS Delivery Models the Answer to Doing More with Less? (Strategic Focus)

ReportsnReports:Are Hosted and SaaS Delivery Models the Answer to Doing More with Less

? (Strategic Focus)

Are Hosted and SaaS Delivery Models the Answer to Doing More with Less? (Strategic Focus)

As the higher education market prepares for a period of unprecedented change, institutions will increasingly seek new ways to do more with less. Historically, institutions has been reluctant to adopt alternative delivery models for technology, but many will begin to view them as a valuable strategy for adding sophisticated technology solutions while holding IT budgets relatively constant.

Source: SaaS Market

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Scope

Identifies the key forces driving and impeding the adoption of SaaS and other alternative delivery models

Offers insight into how IT vendors can improve their service delivery models

Analyzes the crucial issues that will affect the decision to either adopt an on-premise model or outsource to a third party

Explores the competitive landscape for higher education vendors that offer alternative delivery models

Highlights

A growing number of institutions have come to realize that providing IT services is not their core competency. Using alternative delivery models or outsourcing specific IT functions to a third-party vendor will offer a slew of benefits to institutions and will be well-received in the higher education market.

The success of individual vendors with exploiting alternative delivery models will depend largely on their ability to offer the right IT solutions and services to alleviate the appropriate pain points. Therefore, vendors need to be aware of which functions are most likely to be outsourced and which are likely to be kept on-premise.

As more and more applications are made available through SaaS and institutions become accustomed with this technology, SaaS will become more mainstream in the higher education market. However, until institutions are ready to make that leap to use SaaS for mission-critical systems, SaaS will not be ubiquitous in this industry.

Reasons to Purchase

Validate your market messaging and positioning in the education market

Gain insight into which delivery model works best within the higher education market

Understand what drives institutions to adopt a SaaS delivery model

Summary 1

Key Messages 2

It's time for institutions to get back to doing what they do best 2

A multitude of factors will increase the uptake of alternative delivery models 2

Vendors are in varying stages in providing alternative delivery models to higher education 3

Although SaaS is becoming mainstream, it will never be ubiquitous 3

Table of Contents 4

Table of figures 4

Market Opportunity 5

It's time for institutions to get back to doing what they do best education and research 5

Alternative delivery models what do they really mean? 6

On-premise versus outsourced and on-demand options 7

A multitude of factors cause institutions to revisit the alternative delivery model options 9

Technology is complex and institutions can no longer provide the human resources to manage it 10

Round-the-clock reliability and performance are an expectation rather than a luxury 10

Disaster recovery readiness has persuaded many institutions to switch to SaaS 11

Alternative delivery models provide a lower cost of ownership 11

SaaS-based applications offer up-to-date software and increased functionality 12

Alternative delivery models are not perfect for everyone 13

Institutions have concerns about security and the access to sensitive student data by third parties 14

Leave IT security to the technology experts; it's their job 14

Large investments have already been made towards on-premise delivery models 14

Institutions do not want to give up control over mission-critical solutions 15

Institutions link early cumbersome and costly ASP models to SaaS 15

Institutions, meet ASP's younger, hipper cousin, SaaS 15

Technology Evolution 16

Institutional characteristics have little impact on the adoption of alternative delivery models 17

In higher education, mission-critical and SaaS are like oil and vinegar 18

SIS will not likely be a SaaS offering any time soon 19

Just because SaaS is out, it doesn't mean that other alternative delivery models are off the agenda 19

LMS and lecture capture solutions are getting mixed reviews for SaaS 20

CRM and SaaS fit well together 20

A content explosion institutions is driving the adoption of alternative delivery models 21

Email management is a burden on higher education 21

Competitive Landscape 23

Vendors are in varying stages in providing alternative delivery models to higher education 23

ERP vendors are supporters of alternative delivery models, but the market is not readyyet 23

Datatel 24

Jenzabar 24

SunGard Higher Education 25

When it comes to SaaS, the market is mixed for LMS and lecture capture solutions 25

ANGEL Learning 26

Blackboard 26

eCollege 27

Sonic Foundry 27

Tegrity 28

The higher education market embraces CRM solutions delivered as a SaaS model 28

Intelliworks 28

RightNow Technologies 29

Content management providers are extremely advanced in their SaaS delivery options 29

Google 30

Hyland Software 31

Microsoft 31

Although SaaS is becoming more mainstream, it will never be ubiquitous 32

Go to Market 33

Provide a migration path for SaaS adoption 33

Educate institutions on the benefits of SaaS and other alternative delivery models 33

Invest in developing a solution that is fundamental to higher education 34

Offer innovative industry-sensitive pricing models 34

APPENDIX 35

Abbreviations 35

Methodology 35

Further reading 36

Ask the analyst 36

Datamonitor consulting 36

Disclaimer 36

List of Figures

Figure 1: Institutions are increasingly outsourcing its IT functions, most commonly enterprise applications 6

Figure 2: Summary of various software delivery models 9

Figure 3: Advantages of the SaaS and on-demand delivery model 13

Figure 4: Higher education is changing its opinion of hosting and SaaS services 16

Figure 5: The likelihood that an enterprise application will be offered through a SaaS model 17

Figure 6: There is little relationship between an institution's characteristics and what tasks it outsources 18

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