Nine out of ten companies are going to opt for SaaS service next year as per the recent survey by Gartner. One third of the respondents are planning to replace their in house software with SaaS service. Cost effectiveness is the major reason to go for Saas compared to in house software. The survey involved eight major countries worldwide and 258 IT executives.
But European companies lag behind the American companies in terms of Saas investment. 62% of N Americans think that there is a slight increase of Saas investment in the forthcoming years and 15% think that the increase is significant. The number is 49% and 15% for European standard. The current global recession, which will force firms to cut extra cost in 2009 and 2010, would see budgets redirected from enhancing on-premises solutions towards SaaS solutions.
As per Gartner, despite the increase of Saas spending, the governace policy is still in the early stage. The policy guides the evaluation, procurement and deployment of SaaS.
Source: Computerworld
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