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New Survey Reveals Five-fold Increase in SaaS Adoption

June 23, 2014

While the Internet and mobile technology have revolutionized the way we communicate, cloud computing has evolved both platforms to a new level of communication and collaboration that is allowing individuals and businesses to be more efficient than ever before. Services which were previously only available to large enterprises with on premise infrastructures can now be accessed by the smallest of businesses. According to the largest industry cloud computing survey conducted by North Bridge Venture Partners, Gigaom Research and a record 72 collaborating organizations, this has increased the adoption rate of Software-as-a-Service (SaaS (News - Alert)) fivefold and Platform-as-a-Service (PaaS) six fold within the past four years.

The survey provides detailed information by examining the widest range of applications of cloud technologies and analyzing the inhibitors and drivers from real-world cases across a sample of 1,358 respondents.

Key highlights from survey include:

Cloud is being used to fuel revenue generation or new product creation by 49 percent of the respondents

Almost half or 45 percent of businesses said they are, or plan to run their company from the cloud

Sales and marketing have a 51 percent adoption rate, while customer service and analytics both stand at 43 percent

IaaS and PaaS adoption is reaching a tipping point with 56 percent of businesses using IaaS technologies to harness elastic computing resources and 41 percent using PaaS to prototype and develop new applications

"With four years of data, we're now really beginning to see some interesting trends, such as the five-fold increase in SaaS adoption to 74 percent and the nearly six-fold increase in PaaS adoption to 41percent." said Michael Skok, founder of the Future of Cloud program and General Partner, North Bridge Venture Partners.

The adoption rate will continue to grow at an even faster rate as more organizations start mining information from big data. For the vast majority of businesses it will be much cheaper to use computing resources in the cloud to crunch the information they will be amassing instead of deploying on premises infrastructure. One of the biggest reasons for on premise deployments is security, and the survey highlights that point.

Respondents cited security as a big concern, with 49 percent stating it is an inhibitor, but it is lower than the 55 percent of two years ago. According to the researchers, SMBs that cannot afford industrial-grade security infrastructure are the ones facing these problems, but as cloud security becomes more powerful, those same SMBs will benefit in protecting their digital assets by migrating to the cloud.




Edited by Maurice Nagle

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