We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,258 News Articles

SaaS spending up 18% in a year

Network instability the biggest barrier to adoption in Europe

Worldwide software-as-a-service (SaaS) spending is forecast to reach $14.5 billion in 2012, a 17.9 percent increase from 2011, according to Gartner.

The analyst house added that SaaS sales will experience healthy growth through to 2015, when worldwide revenue is projected to reach $22.1 billion.

"After more than a decade of use, adoption of SaaS continues to grow and evolve regionally within the enterprise application markets," said Gartner analyst Sharon Mertz. "Increasing familiarity with the SaaS model, continued oversight on IT budgets, the growth of platform-as-a-service (PaaS) developer communities and interest in cloud computing are now driving SaaS adoption forward," she said.

The top obstacles encountered when deploying SaaS vary by region, Mertz said. Limited flexibility of customisation and limited integration to existing systems are the primary issues in North America. And in the EMEA region, network instability is the issue most frequently encountered, said Mertz.

Gartner said vendors are more aggressively pursuing SaaS buyers outside traditional markets by offering local-language availability, forming alliances and constructing data centres to accommodate local requirements.

In Western Europe, SaaS revenue is forecast to surpass $3.2 billion in 2012, up from $2.7 billion in 2011, while SaaS revenue is Eastern Europe is projected to reach $169.4 million, up from $135.5 million last year.

Nathan Marke, chief technical officer at IT services provider 2e2, said: "At a time when many organisations still have tight IT budgets the ability to access new applications and services while at the same time reducing capital expenditure is an extremely attractive proposition."

The SaaS challenge for organisations going forward, said Marke, is "to ensure their network infrastructure continues to evolve" and "manage SaaS services effectively alongside the on-premise services they use".

IDG UK Sites

6 best gaming PCs 2015: What's the best gaming PC you can buy in the UK?

IDG UK Sites

Three of the most expensive Limited Edition games ever made: Who's buying a $1,000,000 game?

IDG UK Sites

The future of Microsoft Surface: What to expect from the Surface Pro 4

IDG UK Sites

Best Mac: Apple Mac buyers guide for 2015: iMac, MacBook, MacBook Air, MacBook Pro, Mac mini and...