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

June 25, 2019

Employees at British businesses rate computer downtime as the most significant irritant at their current workplace (41 percent) when asked to pick their top three ...

June 24, 2019

The modern enterprise network is an entirely different beast today than the network environments IT and ops teams were tasked with managing just a few years ago. With the rise of SaaS, widespread cloud migration across industries and the trend of enterprise decentralization all playing a part, the challenges IT faces in adapting their management and monitoring techniques continue to mount ...

June 20, 2019

Almost two-thirds (63%) of organizations now allow technology to be managed outside the IT department, a shift that brings both significant business advantages and increased privacy and security risks, according to the 2019 Harvey Nash/KPMG CIO Survey ...

June 19, 2019

In a post-apocalyptic world, shopping carts filled with items sit motionless in aisles, left abandoned by the humans who have mysteriously disappeared. At least that’s the cliche scene depicted by sci-fi filmmakers over the past two decades. The audience is left to wonder what happened to force people to stop what they were doing and leave everything behind. If this past weekend was any indication, Armageddon begins when Target's cash registers shut down ...

June 18, 2019

Three-quarters of organizations surveyed by Gartner increased customer experience (CX) technology investments in 2018 ...

June 17, 2019

Users today expect a more consumer-like experience and many self-service web sites are too focused on automating the submission of tickets and presenting long, technically written knowledge articles with little to no focus on UX. Understanding the need for a more modern experience, a newer concept called "self-help" now dominates the conversation in its ability to provide a more deliberate knowledge experience approach that better engages the user and dramatically improves the odds of them finding an answer ...

June 13, 2019

Establishing a digital business is top-of-mind, even more so than last year, as 91% of organizations have adopted or have plans to adopt a digital-first strategy, according to IDG Communications Digital Business Research ...

June 12, 2019

If digital transformation is to succeed at the pace enterprises demand, IT teams, the CIOs who lead them, and the boardroom must forge a far greater alignment than presently exists. That is the over-arching sentiment expressed by IT professionals in a recent survey on the state of IT infrastructure and roadblocks to digital success ...

June 11, 2019

Given the incredible amount of traffic traversing corporate WANs, it's not surprising that businesses are seeing performance issues. If anything, it's amazing applications work as well as they do ...

June 10, 2019

Are your business applications sluggish? Choppy? Prone to getting hung up or crashing at the most inopportune times? If these symptoms sound familiar, you might be suffering from the heartache of … poor application performance. Stop me if any of this sounds familiar ...