SaaS investments expected to increase, research shows

3 October 2011

Over 95 per cent of organisations are expected to increase their investment in software as a service (SaaS), a new study has shown.

According to research by Gartner, more than a third of the 525 organisations questioned said they had migration projects under way from on-premise to SaaS.

Almost seventy per cent of organisations have used SaaS for less than three years, which Gartner stated shows that there are increasing numbers of new users of the model.

Sharon Mertz, research director at Gartner, said: “Respondents cited ease and speed of deployment and cost-effectiveness as the top two reasons for adoption. Leading uses of SaaS were either replacements for on-premises applications or net-new SaaS solutions.

“This represents a shift from previous Gartner surveys where more respondents indicated SaaS was being used as an extension to an existing on-premises application.”

The study found that the banking sector is one of the highest ranking industries in terms of deployment of SaaS, alongside federal government and wholesale trade.

Further findings from the report revealed that over a third of participants had experienced problems with their SaaS.

The issues included limited integration with their existing systems, network stability and lengthy implementation cycles.

By Jim Ottewill

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