March 27, 2012
Businesses around the world continue to implement cloud solutions at a rapid pace, and some cloud computing models have reached mainstream status faster than others. Software-as-a-Service, an on-demand delivery model in which enterprises deploy applications and software in the cloud, has become a popular IT solution for companies looking to reduce licensing fees, improve scalability and enhance flexibility.
Although SaaS is already prevalent in numerous industries, the market is expected to expand during the next few years. According to market research firm Gartner, global SaaS revenue is projected to reach $14.5 billion this year, up 17.9 percent compared to last year. Furthermore, the company expects the market to reach $22.1 billion by 2015, signifying that more enterprises than ever realize the potential cost savings and productivity boost attainable through SaaS adoption.
"After more than a decade of use, adoption of SaaS continues to grow and evolve regionally within the enterprise application markets," said Sharon Mertz, research director at Gartner. "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 adoption forward."
The report said the United States represents the most mature of the regional SaaS markets, as revenue is projected to increase from $7.8 billion last year to $9.1 billion in 2012. However, while the Western European market also accounts for several billion in revenue and the Asia/Pacific is quickly showing more interested in cloud products, many companies are still concerned about security issues related to SaaS adoption.
With financial, CRM, ERP, business intelligence, email and other business-critical applications rapidly migrating to the cloud, it's become essential to control access to such applications and encrypt company data in the cloud. Experts say SaaS adopters should implement advanced security solutions capable of protecting data and controlling access across numerous applications in several cloud environments.
-McAfee Cloud Security