Gartner: SaaS Adoption Sees Growth Spike

The use of software-as-a-service (SaaS) in corporations has exploded in the past three years, according to a recent survey by market analyst firm Garner.

According to a recent report that polled 556 organizations in 10 countries, 71 percent of respondents said that SaaS adoption in their companies has occurred in the past three years.

Gartner found that Brazil had the largest number of new SaaS customers, with 27 percent of respondents indicating they've only been using SaaS for less than a year.

Along with current SaaS adoption trending upwards, the survey found that 77 percent of companies planned to increase SaaS spending and 17 percent planned to keep SaaS at their current level.

"Seeing such high intent to increase spending isn't a huge surprise as the adoption of the on-demand deployment model has grown for more than a decade, but its popularity has increased significantly within the past five years," said Charles Eschinger, research vice president at Gartner. "Initial concerns about security, response time and service availability have diminished for many organizations as SaaS business and computing models have matured and adoption has become more widespread."

Enterprise content management and customer relations management services were the two top new applications corporations have recently deployed. As for replacing SaaS services with on-premise solutions, a majority of respondents said that supply chain management, Web conferencing, teaming platforms and social connectivity software and services were the first to be replaced.

"The decision to deploy SaaS-based applications within an enterprise is dependent on the business-criticality of the solution, as well as geography, business agility, usage scenario and IT architecture. Few organizations will completely migrate to SaaS. These organizations will live with a mix of SaaS and traditional on-premises application deployment models with a focus on integration and migration between different deployment models," said Eschinger.


About the Author

Chris Paoli (@ChrisPaoli5) is the associate editor for Converge360.


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