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SAP HANA Cloud Authors: Pat Romanski, Elizabeth White, Liz McMillan, Jnan Dash, Jayaram Krishnaswamy

News Feed Item Improves Their Clients' Bottom Line With Software as a Service Solutions

GREENWICH, CT -- (Marketwire) -- 12/04/12 -- Worldwide software as a service (SaaS) revenue is rising and is expected to outpace their billion dollar a year growth year over year for the fiscal year 2012 according to leading enterprise business consulting service and resource provider

A recent Gartner survey showed that 19 percent of organizations are using cloud computing for most of professional computing and 20 percent of organizations are using storage as a service (SaaS) as well. The Gartner survey found that public cloud adoption varies by service. Infrastructure as a service (IaaS) is moving from lower risk pilot programs and into production environments. Organizations' stated plans to adopt IaaS in the near future reinforce the importance of IaaS in an overall portfolio of infrastructure service offerings.

Platform as a service adoption (PaaS) is clearly being indicated as a growing strategic importance for public cloud services for organizations that are willing to adopt the cloud infrastructure to grow and improve their business needs. With the growing demand and rates coming down as the technology becomes more adaptable to everyday corporate needs the rate of growth is tremendous. Platform as a Service companies are leading indicators of a more substantive move to cloud environments and represent an opportunity for service providers to deliver PaaS oriented solutions which will help their clients make the transition.

With the growth of large enterprise application suites the total amount of work needing to be outsourced overseas is dropping significantly. IT service providers are excelling at greater speeds thanks to the excellent opportunities created for consulting and implementation that are excelling more rapidly thanks to SaaS.

The move to SaaS will help drive additional revenue to the application outsourcing market by drawing applications to external, cloud-based implementations where they would otherwise be considered only for internal deployment. Most organizations are planning to expand their external expenditures as a result of the growth in the public cloud adoption space. 71% of leading cloud adopters are expecting to ramp up their external spending on "end-user" computing infrastructure management.

Very few service providers are planning on reducing their spending on IT services and plan to increase spending on the software as a service marketplace while cutting back on external IT spending. This move to bring more services in-house is proof enough for some people that the 'as a service' offerings and cloud computing is here to stay.

When it comes to data center services, the number of organizations indicating planned spending increases in hosting, and the number of organizations planning spending increases related to data center infrastructure management, point to continued client consideration of various delivery models and options that are available from the data center services marketplace. This competitive dynamic does not, however, inherently favor "one-stop shop" providers.

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