08 July 2011 05:37:31
A recent study from Gartner found that early concerns about the cloud's security and reliability seem to be diminishing. As a result, spending on cloud computing solutions - and SaaS in particular - is expected to skyrocket in the next four years.
According to the research firm, global SaaS revenue will total $12.1 billion this year. This represents a sizable, 20.7 percent increase from the $10 billion generated in 2010. Furthermore, as adoption of SaaS solutions, such as hosted email and security services, continues to increase, Gartner expects global revenue to reach $21.3 billion by 2015.
"Initial concerns about security, response time and service availability have diminished for many organizations as SaaS business and computing models have matured and adoption has become more widespread," said Tom Eid, research vice president at Gartner.
Customer relationship management is expected to represent the largest portion of SaaS revenue, but companies are already spending on solutions that enhance content, communications and collaboration, Gartner stated.
SaaS represents just one portion of cloud computing, though it is generally considered the largest part of the market. According to Forrester Research, the overall cloud computing market is expected to reach more than $240 billion by 2020.
-McAfee Cloud Security