Industry Trends in Cloud Computing by David Dempsey & Felicity Kelliher

Author:David Dempsey & Felicity Kelliher
Language: eng
Format: epub
Publisher: Springer International Publishing, Cham

5.2.3 B2B Supplier–Subscriber Expectations

The above risk–opportunity criteria are not all created ‘equal’, however, and the decision cycle affiliate to B2B SaaS adoption is a complex process. Performance risks are the possibility that SaaS may not deliver the expected level of service. That is, SaaS does not provide application availability to the level anticipated and/or an adequate network bandwidth to facilitate its optimum use or operation as originally stipulated (Gewald and Dibbern 2009). System outages or connectivity problems can affect all customers at once, generating a high value placed on this risk factor (Kauffman and Sougstad 2008). There are also the risks affiliated to problems of interoperability between SaaS solutions and in-house applications located in the subscriber business. Potential losses due to performance risks can be significant because the day-to-day operations will not be optimally supported if these risks materialise in the subscriber environment. Ultimately, these problems are likely to go beyond an efficiency impact, particularly if the subscriber’s own business reputation is damaged due to their customer processes being impacted by a SaaS shortcoming. Thus, the higher the perceived risk, the less likely the SaaS will be adopted by that business.

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