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Tuesday, December 22, 2015
SaaS Becoming Predominant Mode of Access

Recent figures show that SaaS or Software as a Service is slowly overtaking other methods of data access to become the most common model used. While SaaS is not new, it has been growing in popularity recently at a faster rate as more businesses see the value of the cloud-based access to their core applications and data.

SaaS describes software that is hosted on a remote server rather than on premises. Of the nearly $150 billion spent on enterprise application software in 2015, for the first time the majority will go to replacing in-house systems with SaaS or extending current subscriptions.

Common SaaS Business Solutions

While SaaS is available for almost any service imaginable, the most common use for this method is email and collaborative data sharing as well as customer relationship management software. Microsoft's Office 365 is a prime example of software that was once overwhelmingly site-based that has now transitioned to the cloud.

Although hands-on applications are most likely to reside in the cloud, SaaS is also used to manage BI and documents as well as demand generation.

How big is the impact? By next year, half of all CRM systems will be SaaS, with numbers predicted to rise to 85 percent by 2025. On-premises HR software is being upgraded to SaaS systems as often as on-site systems are replaced, as well. Businesses surveyed expected to increase their use of SaaS by 30 percent in the next two years.

SaaS Most Popular Cloud Service

While there are other cloud services available such as infrastructure as a service or IaaS and platform as a service or PaaS, SaaS is by far the most commonly used. By 2019, 56 percent of all cloud workloads are predicted to be powered by SaaS.

Furthermore, SaaS is becoming more important in the larger scheme of organizational IT. A few years ago, SaaS was an anomaly, used to focus on small, pilot projects with collaborative users. Now, many companies are using SaaS for almost everything, and expect their workers to use the cloud-based services for their primary, day-to-day functions. One of the biggest reasons given for upgrading to SaaS was failed on-site functionality or difficulty in upgrading.

If you are struggling with your on-site software and are ready to make the switch to a cloud-based model, talk to C3IT today. We can help you choose the right technology solutions for your company's needs.

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