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Report: SaaS Replacing Legacy Enterprise Apps

Gartner says more than three-quarters of enterprises plan to increase spending on cloud-based apps.


A new report from Gartner finds that enterprises continue to embrace cloud computing enthusiastically, in many cases replacing legacy apps with software as a service (SaaS) versions. According to the report, 77 percent of firms plan to increase their 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," the report states. "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."

The report also found that SaaS users look more favorably on vendors that also offer cloud development platforms. Among those surveyed, 56 said it was very important that SaaS providers also offered platform as a service (PaaS) capabilities, and another 22 percent said it was "a requirement."

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