SaaS market 'booming'
Software-as-a-service (SaaS) revenue in the enterprise application markets is increasing, it has been claimed. According to figures released by IT industry analyst Gartner, the sector is set to top $6.4 billion in 2008, a 27 per cent increase on last year.
Sharon Mertz, research director at the company, said the on-demand deployment model has become increasingly popular over the last four years. "Initial concerns over security, response time, and service availability have diminished for many organisations as SaaS business and computing models have matured and adoption has become pervasive," she continued
Chris Pang, principal analyst at the group, stresses the importance of differentiating between SaaS and hosting, application management or application outsourcing. He added that SaaS on-demand delivers multi-tenant service from a remote location via an internet protocol network and a subscription-based outsourcing contract.
Last week, technology services provider SafeEvault claimed IT outsourcing can improve business performance while reducing overhead costs.
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