IBM has revealed that nearly half of the businesses utilizing Software-as-a-Service (SaaS) are gaining a competitive edge, rather than just reducing expenses. This insight comes from a recent global survey conducted by the IBM Center for Applied Insights, involving over 800 IT and business decision-makers.

The study confirms that SaaS offers a wide range of advantages beyond lowering overall costs. It demonstrates that organizations strategically and collaboratively implementing SaaS are better equipped to execute programs that drive business growth compared to those slower to adopt SaaS.

Princess Cruise Lines, a company organizing cruises in Southeast Asia and other locations, initially turned to SaaS for cost savings, enhanced efficiency, and instant access to technology resources.

Over time, they discovered that the IBM Connections social software platform, delivered as a service through the cloud, cultivated a more team-oriented environment. This, in turn, encouraged innovative thinking. Princess leverages this as a market differentiator, highlighting their superior customer service – a result of their socially advanced workforce.

Almost 20% of companies surveyed by IBM have extensively deployed SaaS and are now reaping the rewards of a competitive advantage. These “Pacesetters,” as they are called, are:

• 79% more likely to experience improved collaboration across their organization and ecosystem through SaaS
• Over twice as likely to have implemented analytics across the organization, transforming big data into insights using SaaS
• More than twice as likely to have fostered innovation through SaaS

“It’s widely known that extensive SaaS deployment offers economic benefits,” stated Craig Hayman, IBM General Manager of Industry Solutions and executive sponsor of the study. “However, genuinely innovative companies have recognized that SaaS provides a real competitive edge to fuel top-line growth.”

In June 2013, IBM introduced the industry’s first cloud suites designed for all C-suite executives. Yesterday saw the announcement of a series of new SaaS applications.

By 2017, global spending on SaaS is projected to reach US$45.6 billion, according to industry estimations. Line-of-business leaders often utilize SaaS to swiftly provide their teams with essential functions, enhance productivity, and capitalize on emerging market opportunities. Industry analysts predict that by 2017, CMOs will outspend CIOs on IT, while Forrester reports that 65% of business leaders intend to purchase technology for their departments without any IT involvement.

However, bypassing IT to deploy SaaS without prior provisioning and security measures can lead to unforeseen consequences. IBM’s study indicates that organizations where IT and business leaders collaborate on selecting, securing, and deploying SaaS applications experience the most significant returns.

For further details or to access the complete report, click here.

* To better understand how leaders are leveraging SaaS for competitive advantage, the IBM Center for Applied Insights** surveyed 879 IT and line-of-business decision-makers from six countries: Brazil, China, India, South Africa, the UK, and the US. Twenty-two percent of respondents hold C-level positions (10% in IT and 12% in other areas). These individuals represent enterprises of varying scales, with 20% employing 10,000 or more individuals and 40% employing fewer than 2,500.