Software as a Service series: Part 1 of 3 - The Growth of SaaS
With the development of cloud computing, the software sector has seen a rapid increase in the uptake of Software as a Service (SaaS). Under this system customers can access new software online via a browser without worrying about sourcing or maintaining in house systems. Over the next few posts I will take some time to explain how SaaS is changing software support and how we at HP are using it to help deliver better results on to you, the customer.
For these posts I have asked some of my colleagues to talk about how HP is using SaaS to improve its Premier Support services. In this first post, Jim Gardner, Head of Marketing for HP SaaS, talks about why more and more organisations are opting for SaaS. Over to you Jim:-
According to IDC, Software as a Service is gathering momentum in the technology industry:
- SaaS is experiencing a compound growth of approximately 20% a year - or to put it another way, six times the rate of traditional software.
- Revenue numbers for SaaS are expected to jump from $13.1 billion in 2009 to $40.5 billion in 2014
- This year it is expected that two thirds of new offerings from established vendors will be sold as SaaS
These are compelling points but it is not surprising in this economy for IT decision makers that money tops the list of reasons to move to SaaS; the economic benefits are too compelling to overlook.
Software as a Service uses operating, not capital budgets (which are generally larger), eliminates the need for a hefty upfront cash outlay, and is far easier to predict and budget for. SaaS also enables the IT department to drive out waste, as it is completely scalable in terms of individual users and often even features. It is also far quicker to integrate, cutting down on switchover and integration times.
The flexible nature of SaaS means companies are able to outsource non-core solutions in an easy, manageable way. This leaves IT teams more able to spend time on developing key applications to deliver differentiation in the market and takes them away from having to manage solutions with no compelling value in the marketplace.
As security, performance, and availability have continued to improve, Software as a Service is increasingly embraced by IT organisations of all sizes and across all industries. HP SaaS already has been providing solutions via the cloud for well over a decade, so we attract a number of blue-chip enterprises drawn to our experience and proven track record.
In the next post we will look at how we can best support customers in a SaaS environment, but in the meantime if you would like to know more about SaaS in HP then why not leave a comment or ask a question below?
