Report: 60 percent of companies using SaaS

27 April 2011

A recent study conducted by IT research service InformationWeek Analytics found nearly 60 percent of companies currently use SaaS solutions, which represents 13 percent growth from the same poll conducted last year.

According to InformationWeek, cost savings and deployment speed motivated more companies to turn to SaaS than any other factors. Upon implementing the solutions, though, companies found the hosted software improved flexibility and scalability as well.

For companies that reported no SaaS use, many believe they do not have the need. However, the typical concerns over security and data ownership also arose. Despite the concern, a number of IT security experts have hailed SaaS. Meanwhile, some organizations, such as the Cloud Security Alliance, are developing best practices and standards to assuage any concerns related to security and reliability.

"Most IT pros tell us they're happy to outsource apps so they have time to focus on content development and other projects, but they still work closely with the vendors to manage service contracts and processes - they don't just relinquish control for reliability and security, for instance," InformationWeek Analytics content director Lorna Grey said.

The growth of the cloud has vendors excited as well. According to a recent report from the Sand Hill Group, a majority of software executives believe SaaS will be key to their success in 2011.

-McAfee Cloud Security