A study by the Cutter Consortium finds that many businesses are no longer willing to tolerate the long deployment cycles, ongoing administrative hassles, high operating costs, and low ROI associated with traditional on-premise software.
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.
