Poorly performing hosted software costing companies substantially

By eddieadams | September 13, 2010

For software development teams creating hosted software solutions, it’s crucial that they function optimally at all times to help users avoid issues related to poor performance. A report recently released by Compuware found European companies using SaaS applications lose more than $700,000 every year due to poor performance. While the number of hosted software solutions continues to grow, teams charged with developing them must ensure they perform properly to avoid losing customers.

Companies have gotten over the security concerns of cloud computing by implementing more rigorous standards. However, issues such as downtime and failing to promote business continuity will greatly hamper the growth of the cloud even as it has proven to save companies money. According to Compuware, though, there are certain steps used by successful SaaS application vendors to ensure optimum performance at all times.

"This research shows us that cloud adoption is being hampered by concerns around application performance. However, there are signs this can be overcome," Richard Stone, cloud computing solutions manager for Compuware, said. "Firstly, those surveyed know that, in order to get the most from cloud applications, an end-user view is needed. They have also indicated that their IT teams have the skills needed to negotiate the more end-user oriented SLAs needed for cloud services."

Altering service-level agreements to measure success based on end-user experience rather than simple availability is one method frequently applied. Hosted software vendors are essentially forced to ensure the solution is not deterred by limited bandwidth or a slowing network. Implementing this metric forces support staff to ensure their product is functioning at all times, rather than dismissing a user complaint because the solution should be functioning properly. In fact, 67 percent of vendors included in Compuware’s survey believe they currently have the employee capacity available to measure their own success with this metric. In the past, they hesitated because they did not believe basing SLA’s on end-user experience would benefit them. However, many think it will ensure they perform as well as they can at all times.

Globally, SaaS applications have been viewed positively by a large majority of the companies using them. According to Gartner, 95 percent of companies using SaaS at the beginning of 2010 planned to expand or maintain their investment through the end of the year.