The main benefit of software as a service (SaaS) is the fact that it lowers costs.
This is according to a recent report from PC World, which noted that both upfront and long-term costs are reduced.
Other benefits include improved support for remote users and faster delivery of application features, the news source added.
The article follows the publication of Forrester Research's report Sizing the Cloud.
According to the paper, the global market for cloud computing, including the public, private and virtual cloud, will leap from $40.7 billion this year to more than $241 billion in 2020.
SaaS in particular is identified by the research team as the largest public cloud category so far.
Indeed, total revenues for the sector in this year alone will reach $21.2 billion and is expected to account for 26 per cent of the total packaged software market by 2016.
After this point, SaaS is expected to reach saturation point and growth will stabilize between 2016 and 2020.