SaaS appeal on the up due to economic downturn
We’ve just come across a very interesting article concerning Software as a Service or Saas which was published by Rackspace, the company that manages all our servers.
This is of particular interest to us as our latest product www.cannybill.com runs on this exact business model.
A new survey adds weight to the idea that Software as a Service (SaaS) is becoming increasingly popular due to the current financial downturn.
Research by the UK’s National Computing Centre (NCC) has found that more companies are considering SaaS as an alternative to more traditional IT infrastructure. The market data showed that as many as a third of the businesses surveyed were either binning or delaying the IT deployment they’d been planning – indicating that the current financial situation is having an impact on IT upgrade plans.
The report took information from 100 UK sites representative of a wide variety of organisations in a number of sizes and verticals, and 23 per cent indicated they would be putting hardware upgrades on hold. An equal number of businesses said they would be doing the same for software research plans.
According to news site CBR Middleware, Steven Fox of the NCC said: “This will force companies to look more seriously at alternative delivery infrastructure such as SaaS and cloud computing.”
The results support recent research which has indicated that in the next year many IT investments will be under close scrutiny as companies attempt to weather the recession. For example, earlier this month a Gartner survey claimed that 90 per cent of organisations were set to grow SaaS.
Additionally, NCC’s research found that 30 per cent of the respondents saw SaaS as either an ‘important’ or ‘very important’ alternative to traditional forms of application infrastructure delivery.
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