SaaS application Growth Rapid Choice service depends on pros and cons

With the advent of the cloud computing model, SaaS applications will grow rapidly over the next few years, according to IDC, a market research firm. By 2012, 85% of new IT service providers will focus on SaaS services.

IDC says revenue from the SaaS services market will grow in leaps and bounds over the next few years. Services such as application software, application development, and infrastructure software will increasingly be presented as SaaS. By 2014, the total revenue from the SaaS market in the United States will increase from $13.1 billion trillion in 2009 to $40.5 billion.

According to incomplete statistics, 2010 years of traditional self-built IT services market revenue has dropped more than 7 billion U.S. dollars. With the continued development of the SaaS model, the traditional self-built IT services market will start to decline, analysts said.

The SaaS market in the third world emerging countries is growing relatively fast, according to IDC's latest market research report. In 2009, the US SaaS market accounted for 74% of global SaaS market share, while its market share fell to 54% by 2014. Europe, the Middle East and Africa will account for 34%, and the Asia-Pacific region accounts for about 20%.

Analysts say the biggest driver of an enterprise's choice of SaaS program is its ability to deploy quickly. In SaaS scenarios, businesses do not need to purchase any software, hardware, or equipment. The maintenance and upgrade of the system is also to be borne by the service provider.

Altimeter Group, a market analyst, says that despite the obvious advantages of SaaS services, there are some inherent flaws. These are the enterprises in the choice of IT services must be considered.

First, the enterprise may be limited by the network environment and network authentication when using SaaS service, and can not access its own data well. When choosing a SaaS service, an enterprise must ensure that the data is owned and unhindered access to its data center to use these services.

Other, enterprises may have some unforeseen additional costs when using SaaS services. These additional costs may be the largest cost of expenditure in the programme.

Third, enterprises may have intellectual property problems when using SaaS services. As data is stored in the service provider data center, it is also a concern to ensure that data is leaked. Enterprises must consider multi-level security and service support when choosing SaaS service providers.

(Responsible editor: The good of the Legacy)