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November 29, 2012

Worldwide SaaS deployment increased since 2009: Gartner

The survey indicates the strong and continual expansion with late adopters

By CBR Staff Writer

Adoption of software as a service (SaaS) model by the businesses has increased over the past years with majority of organisations are using it for less than three years, according to a survey conducted by Gartner.

Gartner revealed that about 71% of the surveyed have commenced using the SaaS since 2009 for replacing the older on-premises applications, which suggests strong and continual adoption of the model by late adopters.

Brazil reported the highest users with 27% using SaaS for below one year over all the surveyed organisations fromNorth and South America, Europe and Asia/Pacific.

Gartner research vice president Charles Eschinger said about half of surveyed in Asia/Pacific indicated the primary adoption driver of SaaS was net new deployments, while the US and European respondents specified their strongest driver was to replace legacy onpremises applications.

"It’s not surprising that SaaS is being deployed as net new deployments in Asia/Pacific since many of the users are relatively new businesses with few legacy systems," Eschinger said.

"Markets, such as the U.S. and EMEA are mature with existing enterprise systems and are beginning to use SaaS as a replacement for legacy applications."

The survey also conveyed that all the surveyed regions including North and South America, Europe and Asia/Pacific will see increased investments in SaaS, with 77% of respondents

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According to the survey, investments in SaaS are expected to increase across all regions, with 77% of surveyed tend to increase spending on SaaS, while 17% to keep spending the same.

The survey revealed that about 80% of respondents in Brazil and Asia/Pacific are planning to increase investments on SaaS applications over the next two years, while about 73% of US and 71% of European respondents plan increased investments on SaaS.

"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," Eschinger said.

"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."

Customer relationship management (CRM) and enterprise content management (ECM) were the applications most frequently beingnewly deployed, while supply chain management (SCM), web conferencing, teaming platforms and social were the applications opted for replacing on-premises solutions.

"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," Eschinger said

"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."

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