Gartner forecasts rise in SaaS uptake

Gartner forecasts rise in SaaS uptake

Research firm Gartner revealed that the uptake of Software as a Service (SaaS) is set to increase in the coming years, with many firms planning to increase their spend dramatically.

The survey by Gartner revealed 77 per cent of companies are expecting to invest further in SaaS, while 17 per cent plan to keep expending the same, with Europe the main area for the spending, as 71 per cent are set to boost cloud investment in the next two years.

"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.

He explained that initial concerns around security, response times and service availability are now a thing of the past for many organisations as SaaS cloud-based technology has matured since its early inception and adoption has become more widespread.

Mr Eschinger also explained that the SaaS solution may not be the right thing for all firms, as it depends on the business-criticality of the solution, as well as geography, business agility, usage scenarios and IT architecture.

"Few organisations will completely migrate to SaaS. These organisations 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," he said.

When it comes to costs, SaaS is often balanced against the flexibility and scope of the technology, but using it as a solution means that forms can cut the amount of money spent on IT support by outsourcing maintenance to the provider of the software.

While organisations using this method will gain in terms of cutting support costs, the flexibility of the system can be limited, with changes complicated to implement, meaning firms need to balance savings with the amount of flexibility they need.