The Business Benefits of Software-as-a-Service: Making the Most of the On-Demand Advantage

Software-as-a-Service (SaaS) is a growing phenomenon in worldwide business today. From the original ideas of outsourcing the data center and having third parties manage the software (the ASP movement of the turn of the century) to true SaaS today, the tsunami of outsourced IT and new methods of accessing business software solutions has created a multi-billion dollar market.

Research backs up the widespread adoption of SaaS in business:

• IDC reports that it expects customer spend on SaaS to increase to $14.8 billion by 2011.
• Gartner Group reports that SaaS revenue in enterprise application software alone will grow 21% in 2007 - to reach $11.5 billion by the end of 2011.
• Two out of three businesses are either buying or considering buying software via the subscription model.
• McKinsey reports that the proportion of CIOs considering adopting SaaS applications in the coming year has gone from 38% a year to 61%.

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