CIO Symmetry

Aug 27 2009   8:31PM GMT

Are SaaS and server virtualization helping you turn the budget corner?

Christina Torode Christina Torode Profile: Christina Torode


I’ve been asking IT execs what’s on their agenda for next year and the good news is that it’s not all about further delaying projects. Rather, budgets are opening up a bit, due, in part, to ROI realized from investments in a SaaS platform and server virtualization.

One midmarket financial services firm has been focused on staying afloat and only making must-have IT investments such as a new CRM system. Critical projects — such as an application development initiative to build new tools for its financial advisors — were put on hold.

When the company invested in a quarter-million dollar CRM SaaS project involving back-end system integration, it realized a more than tenfold ROI on its investment. Moving into 2010, Web tool development for its financial advisors is once again a top priority, with cost savings and strategic investments in a SaaS platform playing a key role in this renewed development focus. Another company I spoke with saved $100,000 to $150,000 by using server virtualization to significantly reduce its number of physical servers and, in turn, did not have to buy a new chiller for its data center. This company, a self-storage space facility provider, also adopted a SaaS platform for its call center and Point of Sale [POS] system, among other applications.

The storage facility provider migrated 6 million records from its POS system to and used Cast Iron Systems’ professional services team to do the integration work. This saved the storage space provider $97,000 because it didn’t have to hire or bring in a third-party consultant for the coding.

With these kinds of savings and ROI, it would seem that those who invested some money in SaaS and server virtualization may be better off budget-wise moving into 2010.

Let us know how your budget is looking for 2010. Email me at

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