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SaaS: The Allure of On-Demand
All signs continue to confirm the growth of On-Demand computing infrastructure and applications. Managed service providers are seeing strong demand for the off-site hosting of applications. A report by market research firm In-Stat predicts that the SaaS market will see continued growth over the coming years. The report predicts compound annual growth rate of 7 percent every year through 2012.
The In-Stat report declares that while many are calling the move of many organizationts to On-Demand and SaaS applications as a “trend”, it is more than a trend. It is a new “paradigm”.
“Though business decision-makers have indicated that they plan to out-task major business functions like security, storage, phone system management, et al, at a moderate pace, adoption of third-party application hosting is the fastest growing area in managed services,” says Jeff Jernigan, In-Stat analyst. “The on-demand hosted application model has seen acceptance in the small-to-medium business market, and now demand is rising among enterprise-sized firms. The on-demand model will also hasten adoption of utility computing services.”
The report sees On-Demand managed services as becoming increasing more capable, and as such will become even more attractive in coming years, allowing the market to continue along the path it has followed of steady annual growth.
