Five key takeaways
Uncovering the value of managed services in your SaaS environment
Deploying SaaS to deliver successful outcomes in healthcare
Research summary
Enter
Understanding the true cost of SaaS
Navigating the path to SaaS success
The key to unlocking sustainable transformation
New
Cloud collaboration
Open the door to long-term return on SaaS investments
Open the door to innovation in cloud functionality
Open the door to strategic alignment
Open the door to expertise and operational excellence
Opening up new paths to innovation
Knowing where and how to access all that cloud offers can accelerate transformation so you can capitalize on new technology, draw insights from enterprise data, and nimbly pivot amid constant change. Companies are increasingly adopting software as a service (SaaS) throughout the enterprise. But when you move systems to the cloud, you don’t flip the switch and call it a day. Getting long-term value from cloud investments requires ongoing evolution beyond implementation. It means keeping up with the rapid innovation cycle of SaaS providers, who release new functionality through ongoing software updates. Discover how managed services can open the door to long-term return on SaaS investments.
Global Head, KPMG Managed Services Principal, Advisory, KPMG in the U.S.
Dave Brown
Adoption of SaaS continues to increase.
of firms expect SaaS offerings to account for half of the applications they use by 2024.
01
However, the full value is limited if new features aren’t deployed to deliver business outcomes.
40%
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62%
of business readiness is outsourced to third parties.
Meanwhile, technical features are prioritized over user or domain features.
While SaaS adoption is increasing, IT is responsible for determining how to deploy new functionality.
However, their engagement with their SaaS provider may not delivering the expected value.
42%
of respondents don’t view their SaaS provider favorably when considering them as an asset to adopt and deploy new functionality.
69%
of enterprise leaders say a managed services firm must bring application specific talent in order to deliver essential SaaS services.
Without a clear view of how SaaS creates long-term value,
further investment may be questioned.
Only
of SaaS investments are rolled back into the firm as on-premise solutions due to lack of business demand.
8%
This is an increase from 29% in 2022
02
New functionality is important.
However, internal IT teams may be focused on technical readiness and cost management over ensuring business readiness.
03
04
To get the most from SaaS solutions,
enterprise leaders must leverage their managed services partnerships.
05
Misalignment or poor planning for platform and support costs is the more likely culprit.
Cloud modernization Oracle POV
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Focus on getting the most from your SaaS investment
Cloud transformations sometimes fall short of their promise because unexpected costs eat into the business case. Discover how extracting maximum value from your investment is only obtained when viewed through a lens of continuous evolution and improvement.
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KPMG and HFS surveyed more than 600 executives across the globe on their adoption of SaaS and how they keep up with ongoing innovation.
See the full results here on how companies that collaborate with service providers to enable the fast-changing needs of the business can open the door to sustained transformation.
Modern IT, meet modern managed services
IT’s mission has evolved—today’s IT leaders are still expected to cover their traditional responsibilities, but are now also tasked with delivering strategic business objectives such as agility, innovation, collaboration, and value creation. As organizations look to the Cloud as the solution to these challenges, discover how modern managed services enable CIOs to achieve their strategic goals and deliver better, lasting results for all their stakeholders.
Modern demands require modern managed services
Most businesses have yet to execute on their cloud ambitions. Using technology as a business enabler is a crucial competitive challenge; doing it effectively is what sets winning companies apart. While it’s an essential ingredient, the Cloud by itself doesn’t transform organizations. There’s another ingredient that’s required—a new set of skills and capabilities designed to help IT leaders succeed at their modern mission. To truly achieve your transformation objectives, you need someone to help you accelerate your pace of change.
Driving ongoing value from your Oracle investment
Most IT departments struggle to keep up with the new functionality that’s released regularly by SaaS providers. In fact, Oracle buyers say access to new functionality is a top goal for SaaS, but most adopt fewer than half the new capabilities that are released. To realize long-term return on a SaaS investment, companies must develop a process for how they will absorb software updates post-implementation. For savvy buyers, that process includes managed services providers who have strategic alliances with Oracle. These providers know what’s coming in future releases, how to manage the implications for business processes, and how to continually optimize the platform for a client’s business. In short, these strategic partners help you to drive long-term returns from your Oracle Cloud investments.
Automation & efficiencies Integration with other tools Security Employee experience
Reducing redundant software IT agility Improved customer experience
Most companies use SaaS for 26-50% of their enterprise applications, with more uptake planned in the next two years.
Companies are increasingly using managed services to evaluate and deploy SaaS functionality, tapping 7 top areas of value:
However, only 27% of respondents have adopted half or more of the new features released by software vendors.
And nearly 40% of business leaders use managed services for major SaaS enhancements, including process customization and data integration.
Fewer than 15% of IT departments have dedicated in-house experts for SaaS updates.
That’s why 30% of IT leaders are using managed services for release management.
Updates are more frequently taken for technical and security improvements than for business transformation functionality such as forecasting tools or data visualization.
As a result, more business leaders and IT departments are collaborating with managed services providers to turn SaaS applications into enduring assets for improving the business.
In deciding which SaaS functionality to accept, only one-third of IT respondents said they consider alignment to the business strategy and target enterprise outcomes.
The ongoing shift to SaaS is driven by increasing investments in areas like AI/analytics, application infrastructure, and security.
Companies are turning to managed service providers for this expertise, with 75% of IT respondents placing high value on data architects, business process architects, and application-specific resources.
The top 5 criteria for selecting managed services are:
A superior employee experience Business consulting services Domain expertise
Industry expertise Operational excellence
