Business have moved beyond using Software as a Service (SaaS) for pilot projects and now deploy SaaS solutions for mission critical operations and production, according to a recent Gartner survey.
Managed cloud services software is the fastest growing SaaS model, with a growth-rate of 46 percent. That’s nearly twice the growth rate of public cloud which is about 24 percent.
“The most commonly cited reasons the survey found for deploying SaaS were for development and testing production/mission-critical workloads,” said Gartner’s research vice president Joanne Correia. “We’ve seen a real transition from use cases in previous surveys where early SaaS adoption focused on smaller pilot projects. Today, the projects are mission-critical and production grade. This is an affirmation that more businesses are comfortable with cloud deployments beyond the front office running sales force automation (SFA) and email.”
While junior IT staff and respondents outside of IT said their SaaS adoption is driven by lower cost of ownership, CIOs said they are motivated to adopt SaaS in order to create a “modern, innovative IT environment with operational agility and business advantage as key outcomes.”
Many organizations continue to have concerns about the security of the public cloud, while managed cloud services providers are able to deliver higher levels of security and support for auditory compliance and reporting for heavily regulated industries and public companies.
“Data loss, data breaches, unsecure application programming interfaces (APIs) and shared technology in a multitenant environment are just a few of the concerns expressed by respondents tackling the option of using public cloud,” said Gartner’s director of research, Laurie Wurster. “In addition, recent concerns of government snooping in the name of anti-terrorism and general privacy issues contribute to the lack of public cloud adoption.”
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