SaaS (Software-as-a-Service) Adoption On The Rise

Posted 12.5.12 by

A new Gartner report that focused on the adoption patterns of SaaS (Software-as-a-Service) globally, found its use increasing dramatically both in new as well as established markets in the ten countries around the world that were polled.

Much of this adoption is new, Gartner citing that 71% of the organizations polled said that they had been using it less than three years. While this is being found in emerging markets, it is not exclusively so. On-premises applications that were being used are even being replaced with SaaS, and the majority of companies plan to increase their SaaS investments. The report goes on to explain a couple of factors that may have resulted in this SaaS boom: “Initial concerns about security, response time and service availability have diminished for many organizations as SaaS business and computing models have matured and adoption has become more widespread.” Also, it’s projected that SaaS and cloud-based application services will have a 19% Compound Annual Growth Rate (CAGR).

With SaaS becoming a larger component in companies, IaaS (Infrastructure-as-a-Service) cloud hosting is also on the rise. Outsourcing to an IaaS cloud hosting provider can help take the time and costs of your business away from the IT infrastructure and management needs, to allow you to redirect your focus back on the applications that are important to your customers. Outsourcing your hosting can also help alleviate some of the pressures and requirements you may face if it’s necessary to meet a compliance with your business. If you process cardholder data or patient health information, you must meet PCI or HIPAA compliance, for instance.

SaaS is eclipsing the old application structure, making it easy to give the high availability that companies need, while the IaaS cloud makes the management of your hosting convenient, secure, and cost-effective.

More reading on SaaS and cloud hosting:
Gartner: SaaS Now Replacing Legacy Apps, As Well As Extending Them.
Private Cloud Security: How Your Data Security Changes In The Cloud
Overview of cloud hosting
Cloud Computing and Compliance

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