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Global spending on SaaS rising

Rachel Wheeler Archive
Global spending and business appetite for enterprise application software shows no sign of abating, new research has suggested.

The latest report from IT research company Gartner has predicted that low start up and maintenance costs combined with the ability to share applications through the cloud will ensure that software as a service (SaaS) will enjoy rapid growth in the next four years.

According to the organization, this year worldwide SaaS sales are expected to reach $8.5 billion - up 14.1 per cent from 2009 levels.

"After a decade of use, adoption of SaaS continues to grow and evolve within the enterprise application markets," said Sharon Mertz, research director at Gartner.

"As tighter capital budgets demand leaner alternatives, familiarity with the model increases, and interest in platform as a service and cloud computing grows."

Ms Mertz explained that in recent years, concerns surrounding security, response time and service availability have been reduced as more businesses begin to adopt the technology.

The International Data Corporation recently claimed that revenue accrued through SaaS will grow faster than any other traditional packaged software in coming years.

Posted by Paul Newman