SaaS adoption on the rise, says Gartner
Friday 8th May 2009
Global revenues from software-as-a-service (SaaS) products and services will soar from $9.6 billion (£6.4 billion) this year to $16 billion by 2013, a new report has predicted.
According to Gartner, a growing number of businesses are using SaaS for a range of purposes, including office suites and digital content creation, which represent the two fastest growing segments of the SaaS sector.
Econsultancy published a report earlier this year suggesting that SaaS web hosting is rising in popularity among firms in the UK.
Sharon Mertz, research director at Gartner, said that the growth of the SaaS industry can be attributed to the recession forcing businesses to look to cheaper alternatives to traditional IT solutions that may require significant capital investment.
"Adoption of the on-demand deployment model has grown for nearly a decade, but its popularity has increased significantly within the last five years," she remarked.
Meanwhile, another recent report from Gartner suggested that European firms are increasingly outsourcing their IT and business process functions to reduce costs.
Written by Dipika Patel