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SaaS: Rapid Growth of SaaS for Business Critical Applications
Research from Saugatuck found that 26 percent of companies have at least one deployed SaaS application. This is up from just 11 percent last year, a 150 percent increase over one year.
The increase in deployments is coupled with a drop in the number of companies that had no plans for SaaS. This years survey found just 8 percent had no plans, compared to 26 percent who voiced concerns last year.
Saugatucks analysis concludes that SaaS is beyond the tipping point in terms of both acceptance and adoption. The results are compiled from a survey taken of 250 global IT executives, compared with 156 executives in the previous year.
One surprising statistic was the huge jump in interest in SaaS by large (>$1 Billion) companies for mission-critical business applications: 53 percent, compared to 13% the previous year. Large enterprises now are showing more interest in SaaS than small and medium sized companies, a reversal from the previous year.
Reasons cited for the interest in SaaS include:
- Introduction of SaaS development platforms and ecosystems, like Salesforce.com
- The increase in SaaS environments certified against standards like SAS-70
- The availability of more domain-specific vertical solutions
Another interesting trend noted in the Saugatuck survey is that SaaS adoption architectures are now frequently combining SaaS with on-premise software, creating hybrid application environments.
