SaaS adoption rates are continuing to increase

Friday 30 November 2012

Business confidence

Businesses are continuing to migrate to the Software-as-a-Service (SaaS) model of cloud computing in greater numbers, it has been reported.

According to IT analyst Gartner, SaaS adoption has "grown dramatically" among users of enterprise software solutions.

The firm discovered that 71 per cent of organisations have been using SaaS for less than three years, pointing to a rise in usage since 2010.

Gartner noted that interest in the SaaS deployment model "remains strong and continues to expand with late adopters".

Brazil was found to have the largest number of new users, with 27 per cent of respondents in the country using SaaS for less than a year.

"Implementing net new solutions or replacing existing solutions is now the primary driver for using SaaS," Gartner claimed.

The analyst highlighted a shift in SaaS adoption from extensions to existing applications to net new deployments or replacements of existing on-premises applications.

Charles Eschinger, research vice-president at Gartner, said the primary motivation for using SaaS varies from region to region.

"Although approximately half of respondents in Asia/Pacific indicated the primary adoption driver of SaaS was net new deployments, the US and European respondents indicated their strongest driver was to replace existing on-premises applications," he stated.

Mr Eschinger said that North American and European markets are more mature with existing enterprise systems and are beginning to use SaaS as a replacement for legacy applications.

"Seeing such high intent to increase spending isn't a huge surprise as the adoption of the on-demand deployment model has grown for more than a decade," he added.

But Mr Eschinger said the popularity of SaaS has increased "significantly" in the past few years.

"Initial concerns about security, response time and service availability have diminished for many organisations as SaaS business and computing models have matured and adoption has become more widespread," he stated.

Posted by Alex Boardman