Information Technology and Software
Figure 2: Share of World Broadband Subscribers by Region in Q4 2009
2.94% 6.84% 6.20% 14.00% 25.21%
These reasons are spurring many organisations to explore subscription-based software-as-a-service (SaaS) solutions in which scientific software and information are hosted offsite with a neutral third party and accessed online. With this type of on-demand approach, companies can focus more on their core business by outsourcing IT operational and maintenance costs and turning variable costs into fixed costs (see Table 3).
24.41% North America Asia Pacific South and East Asia Eastern Europe Middle East and Africa Source: Point Topic Ltd, World Broadband Statistics: Q4 2009.
by reducing the use of paper and overnight mail to send data reports;
• •
streamlined processes: instant availability of data and documents across multiple sites, teams and trials streamlines workflow process and improves resource utilisation; and
improved information security: remote data and document storage eliminates the use of unsecure laptops for this purpose; lost records can easily be retrieved and tasks and records can be monitored electronically.
Broadband Access Makes the Case to Move Online
The adoption of web-based solutions by sponsors and CROs is being helped along by widespread access to broadband technology. By the end of 2009, there were 466.95 million broadband subscribers across 112 countries (see Figure 2).11
Analysis of 2009 economic stimulus
packages among leading countries show that many locales plan to expand broadband access and bolster connection speeds. The US leads the pack with the largest broadband infrastructure investment (US$7.2 billion), followed by Japan (US$3.7 billion), Australia (US$3 billion), Canada (US$150 million), Finland (US$130 million) and Spain (US$90 million).12
Such global investments in broadband
infrastructure will greatly benefit the health sector by providing more efficient delivery of healthcare services and health information to the general public.13
broadband access.14
In the US, 99% of physicians in the private sector have Having reliable, high-speed Internet access
around the globe will enable physicians, even those in remote areas, to more easily utilise web-based solutions for clinical trial management.
The Industry’s Next Step – Software-as-a-Service
Despite the overarching advantages of web-based solutions, sponsors and CROs are still faced with the unpredictable costs of establishing and maintaining an IT infrastructure, training and supporting users, and managing data security and compliance standards. According to the IT research firm Gartner, companies can spend more than 75% of their IT budget on maintaining their traditional software systems.15
This includes network infrastructure, software maintenance and the staff required to manage it. 52 Western Europe Latin America
Historically, software was sold based on a perpetual licence, paid for upfront and implemented and maintained by in-house IT staff. Software providers would deliver enhancements or upgrades through patch releases, usually at an additional cost to their customers. With the SaaS model, the vendor administers the software hosted at a central data centre and manages it using its own support staff. This approach eliminates the heavy operational and hidden IT costs associated with traditional client server software. The SaaS subscription fee model covers maintenance, upgrades and IT personnel expenses, greatly reducing upfront investments in software.
For the industry, the cost of having to train in-house staff to install, maintain and resolve problems with hardware and software, as well as provide end-user technical support, is removed. As these investments are built into the SaaS model, organisations are not weighed down by upfront capital expenditures and ongoing service and support costs. Rather, companies incur predictable monthly bills for services consumed.
Maintaining security standards for the enterprise is expensive and time-consuming for every IT department. IT resources are typically stretched thin and keeping security software current can be a challenge. SaaS providers, particularly those handling critical business information, invest large amounts of time and resources to develop comprehensive security procedures and controls for every aspect of their service offerings. SaaS providers for the pharmaceutical industry will have measures in place to keep their clients in compliance with the FDA 21 CFR Part 11 regulations. They will have ISO 27001 certifications, ensuring thorough outside reviews of their security policies and procedures. Players in this market know this is a requirement for business.
Software-as-a-Service Solutions Ready for Sales, Marketing, Training and Document Exchange
Adoption of the on-demand model has grown for nearly a decade, but its popularity has increased significantly within the last five years. Looking ahead, Gartner has forecast that global SaaS revenue is expected to hit US$14 billion by 2013, more than double the 2008 revenue of US$6.4 billion.16
In the life sciences industry, there are a number of opportunities for converting to a SaaS model. Technologies geared for pharmaceutical sales and marketing, such as customer relationship management (CRM) solutions, are the most heavily adopted SaaS applications. With the pharmaceutical industry operating in a global arena, it is essential
DRUG DEVELOPMENT 20.40%
Furthermore, organisations “can spend up to four times the cost of their software licence per year to own and manage their applications”.15
Hidden IT personnel costs, such as help desk, IT consultants, deployment maintenance and 24/7 managed operations, are significant contributors to increased operational expenses.
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