Impact of Software-as-a-Service (SaaS) Adoption on Enterprise It Costs in Kenya

Purpose: The purpose of this article was to analyze impact of software-as-a-service (SaaS) adoption on enterprise it costs in Kenya. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The adoption of Software-as-a-Service (SaaS) in Kenyan enterprises has led to significant reductions in IT costs. Businesses have benefited from lower capital expenditures by avoiding investments in on premise infrastructure and software, opting instead for subscription-based models. This shift has also decreased the need for in-house IT staff for maintenance and updates. SaaS allows for scalable services, which is particularly advantageous for small and medium-sized enterprises (SMEs) that can access enterprise-grade software at lower costs. Unique Contribution to Theory, Practice and Policy: Diffusion of innovations theory, resource-based view (RBV) & technology acceptance model (TAM) may be used to anchor future studies on the analyze impact of software-as-a-service (SaaS) adoption on enterprise it costs in Kenya. Practitioners are recommended to adopt a phased approach to SaaS migration, ensuring that cost savings from reduced capital expenditures are effectively reinvested into strategic IT innovations. Regulators and government bodies should create supportive frameworks such as tax incentives and grants for enterprises, especially SMEs, to encourage the adoption of cloud-based solutions.