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SaaS spending to rise 112% by 2014

Rachel Wheeler Archive
Spending by US businesses on SaaS public cloud services has been forecast to grow by a massive 112 per cent between 2010 and 2014.

New research by market intelligence analyst In-Stat has revealed that organizations will increasingly look to take advantage of the cost-saving benefits of the hosted technology in the coming years.

The report added that infrastructure-as-a-service spending will approach $4 billion in 2014. Platform-as-a-service spending will also increase by 113 per cent to approximately $460 million by 2014.

In-Stat noted that the rise will be more prevalent in a number of sectors.

"Within SaaS, the professional services and healthcare verticals will see the largest growth in spending, with each growing over 30 per cent during the forecast period," Greg Potter, research analyst, said.

The research follows recent comments by August-Wilhelm Scheer, president of Bitkom, who forecast that hosted data management solutions such as cloud computing are set to become one of the most popular trends in IT in the coming years.

Posted by Paul Newman