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December 17, 2008

Recession to strengthen SaaS appeal

Research shows more companies considering SaaS as an alternative to traditional IT infrastructure

By Jason Stamper

Economic slowdown is starting to impact on enterprise infrastructure upgrade plans fresh market data has confirmed, with as many as a third of organisations canning or delaying their intended deployments.

In a survey of 100 UK sites representative of organisations of all sizes and vertical sector, 23% said they would be postponing hardware upgrades with an equal number putting software refresh plans on hold.

“This will force companies to look more seriously at alternative delivery infrastructure such as SaaS and cloud computing” Steve Fox of the UK’s National Computing Centre commented on the body’s latest study. 

He said it confirmed earlier research, and showed that any infrastructure project that is viewed either as non-essential or only affecting the back office will face increased scrutiny next year.

NCC’s research highlights a slow but growing acceptance of Software as a Service with 30% of respondents viewing it as either a very important or important alternative to traditional forms of application infrastructure delivery. Only 7% now view SaaS as having no importance.

There are signs that the momentum behind virtualisation technology will continue to accelerate next year, with as many as 60% of the sites polled planning or currently active with server virtualisation projects.

Desktop virtualisation plans are less well developed, with roughly one in five sites having deployed that technology, and another 14% about to get started.

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