Gartner Survey Shows 71 Percent Using SaaS for Less Than 3 Years
November 30, 2012
Share this

Adoption of software as a service (SaaS) has grown dramatically among users of enterprise software solutions, but it varies widely within markets, according to Gartner, Inc. A recent Gartner survey showed 71 percent of organizations have been using SaaS for less than three years.

In June and July of 2012, Gartner conducted a survey of 556 organizations across 10 countries and within four regions (North and South America, Europe and Asia/Pacific) to understand the trend in the movement to SaaS from traditional software license models and to gain insight into how and where software budgets were being spent.

The results indicate that interest in the SaaS deployment model remains strong and continues to expand with late adopters. Brazil had the largest number of new users, with 27 percent of respondents using SaaS for less than one year.

Implementing net new solutions or replacing existing solutions is now the primary driver for using SaaS, according to the survey. Worldwide, there is a shift in SaaS adoption from primarily extensions to existing applications to net new deployments or replacements of existing on-premises applications.

"Although approximately half of respondents in Asia/Pacific indicated the primary adoption driver of SaaS was net new deployments, the US and European respondents indicated their strongest driver was to replace existing on-premises applications," said Charles Eschinger, research VP at Gartner. "It's not surprising that SaaS is being deployed as net new deployments in Asia/Pacific since many of the users are relatively new businesses with few legacy systems. Markets, such as the U.S. and EMEA are mature with existing enterprise systems and are beginning to use SaaS as a replacement for legacy applications."

According to the survey, investments in SaaS are expected to increase across all regions. 77 percent of respondents expected to increase spending on SaaS, while 17 percent plan to keep spending the same.

More than 80 percent of respondents in Brazil and Asia/Pacific indicated more spending on SaaS applications over the next two years.

The US and European countries were not far behind with 73 percent of US respondents and 71 percent of European respondents intending to increase spending on SaaS.

"Seeing such high intent to increase spending isn't a huge surprise as the adoption of the on-demand deployment model has grown for more than a decade, but its popularity has increased significantly within the past five years," said Eschinger. "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."

Respondents picked customer relationship management (CRM) and enterprise content management (ECM) as the applications most often being newly deployed. Supply chain management (SCM), Web conferencing, teaming platforms and social were the applications picked most as replacements for on-premises solutions.

"The decision to deploy SaaS-based applications within an enterprise is dependent on the business-criticality of the solution, as well as geography, business agility, usage scenario and IT architecture. Few organizations will completely migrate to SaaS. These organizations will live with a mix of SaaS and traditional on-premises application deployment models with a focus on integration and migration between different deployment models," said Eschinger.

Share this

The Latest

May 27, 2020

Keeping networks operational is critical for businesses to run smoothly. The Ponemon Institute estimates that the average cost of an unplanned network outage is $8,850 per minute, a staggering number. In addition to cost, a network failure has a negative effect on application efficiency and user experience ...

May 26, 2020

Nearly 3,700 people told GitLab about their DevOps journeys. Respondents shared that their roles are changing dramatically, no matter where they sit in the organization. The lines surrounding the traditional definitions of dev, sec, ops and test have blurred, and as we enter the second half of 2020, it is perhaps more important than ever for companies to understand how these roles are evolving ...

May 21, 2020

As cloud computing continues to grow, tech pros say they are increasingly prioritizing areas like hybrid infrastructure management, application performance management (APM), and security management to optimize delivery for the organizations they serve, according to SolarWinds IT Trends Report 2020: The Universal Language of IT ...

May 20, 2020

Businesses see digital experience as a growing priority and a key to their success, with execution requiring a more integrated approach across development, IT and business users, according to Digital Experiences: Where the Industry Stands ...

May 19, 2020

Fully 90% of those who use observability tooling say those tools are important to their team's software development success, including 39% who say observability tools are very important ...

May 18, 2020

As our production application systems continuously increase in complexity, the challenges of understanding, debugging, and improving them keep growing by orders of magnitude. The practice of Observability addresses both the social and the technological challenges of wrangling complexity and working toward achieving production excellence. New research shows how observable systems and practices are changing the APM landscape ...

May 14, 2020
Digital technologies have enveloped our lives like never before. Be it on the personal or professional front, we have become dependent on the accurate functioning of digital devices and the software running them. The performance of the software is critical in running the components and levers of the new digital ecosystem. And to ensure our digital ecosystem delivers the required outcomes, a robust performance testing strategy should be instituted ...
May 13, 2020

The enforced change to working from home (WFH) has had a massive impact on businesses, not just in the way they manage their employees and IT systems. As the COVID-19 pandemic progresses, enterprise IT teams are looking to answer key questions such as: Which applications have become more critical for working from home? ...

May 12, 2020

In ancient times — February 2020 — EMA research found that more than 50% of IT leaders surveyed were considering new ITSM platforms in the near future. The future arrived with a bang as IT organizations turbo-pivoted to deliver and support unprecedented levels and types of services to a global workplace suddenly working from home ...

May 11, 2020

The Internet of Things (IoT) is changing the world. From augmented reality advanced analytics to new consumer solutions, IoT and the cloud are together redefining both how we work and how we engage with our audiences. They are changing how we live, as well ...