More Than One in Two Companies Have Adopted On-Demand Solutions, Nucleus Research Finds

Information Management Online, January 30, 2007

Rapid implementation and ease of use are fueling the increased adoption of on-demand solutions, according to a new study by Nucleus Research and KnowledgeStorm. More than half of the companies surveyed say they are now using on-demand offerings, and nearly two-thirds say they plan to implement an on-demand solution in the next year.

In an effort to explore on-demand user adoption trends, Nucleus and KnowledgeStorm surveyed 198 organizations across numerous industries. The research found that companies of all sizes are shifting to on-demand CRM, project management, content management and e-commerce initiatives. Rapid implementation and ease of use were the two reasons cited most often for adoption. Surprisingly, only nine percent said cost was a factor, despite the early industry hype about cost savings.

The report shows that technology companies, finance organizations and insurance companies are the broadest users of the on-demand solutions, with more than one out of two organizations in those industries adopting on-demand offerings.

Despite its popularity, however, it is important for organizations to be aware that some vendors are marketing solutions that they claim are on-demand, when, in fact, they are not. The report also provides a checklist potential on-demand customers can use to determine if a solution is an on-demand offering.

This report and others from Nucleus can be found at http://www.NucleusResearch.com.

This piece is brought to you by the Information Management editorial staff.

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