Report: SaaS continues to weigh heavily on business mindset

In a 2011 June and July survey of 525 organizations spanning 12 industries throughout nine countries, Gartner found that 95 percent of the responding organizations expect to continue using Software-as-a-Service at their current rate or increase its deployment.

Slightly fewer than three-quarters of the organizations have used the services for less than three years, yet many businesses are renegotiating their contracts. This is being done to increase functionality, but also because the economic turbulence has made many cloud providers more competitive with their prices.

"Respondents cited ease and speed of deployment and cost-effectiveness as the top two reasons for adoption," said research director Sharon Mertz. "Leading uses of SaaS were either replacements for on-premises applications or net-new SaaS solutions. This represents a shift from previous Gartner surveys where more respondents indicated SaaS was being used as an extension to an existing on-premises application."

According to Cloud Hypermarket, cloud computing spending will account for one-quarter of all IT spending growth by 2012. This shows that as IT services become more advanced, cloud computing and SaaS will continue to be among the main reasons for spending.

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