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    SaaS will benefit from virtualisation growth

Research suggests that two thirds of companies will adopt some form of SaaS as enterprises move towards more virtual and cloud-based computing.

By Chris Green, 6 Oct 2008 at 09:50

Virtualisation

The growth of Software as a Service (SaaS) is expected to advance side-by-side with virtualisation adoption, as companies rethink their approach to application and system management.

This is among the findings of research released today looking at business attitudes towards IT system and software management.

The research, carried out by Vanson Bourne on behalf of web hosting company Hostway, revealed that 66 per cent of the companies surveyed expected to adopt some form of SaaS solution within the next five years.

“The advantages of SaaS are clear,” said Neil Barton, a director at Hostway. “A further 72 per cent of companies are certain that SaaS will make application use more cost-effective because of the savings on over- or under-licensing and management.”

Furthermore, 72 per cent of those surveyed believe that virtualisation will drive SaaS adoption. SaaS is also seen as a practical and cost-effective way for smaller businesses to tap into the software resources normally reserved for larger competitors, as it removes or reduces the need for in-house support skills.

“By allowing service providers to offer SaaS more affordably, virtualisation has the ability to change and disrupt traditional software purchasing and delivery methods. As smaller companies begin to adopt SaaS via service providers’ virtualised servers, they can eliminate the need for dedicated staff to manage and monitor applications,” added Barton.

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