Consequently, an increasing number of organizations are seeking outsourced and hosted solutions, which offer comparable levels of functionality at a fraction of the cost. Now a viable alternative to on-premise solutions, Software as a Service (SaaS) adoption is expected to grow over the next several years. Research by industry analyst firms shows that the percentage of business software spending on SaaS will grow from 5% in 2005 to 25% in 2011.
New Life for Hosted Applications
Application service providers (ASPs), the first companies to offer software via the Web, hosted third-party applications in mini-data centers. The large complex software had limited functionality and required expensive server installations.
