Infotech Lead Asia: Adoption of software as a service (SaaS) is set to pick up in the Asia Pacific region.
Approximately half of respondents in Asia/Pacific say the primary adoption driver of SaaS was net new deployments.
Charles Eschinger, research vice president at Gartner, said: “It’s not surprising that SaaS is being deployed as net new deployments in Asia/Pacific since many of the users are relatively new businesses with few legacy systems.
The U.S. and European respondents indicated their strongest driver was to replace existing on-premises applications.
Markets, such as the U.S. and EMEA are mature with existing enterprise systems and are beginning to use SaaS as a replacement for legacy applications.
More than 80 percent of respondents in Brazil and Asia/Pacific indicated more spending on SaaS applications over the next two years. The U.S. and European countries were not far behind with 73 percent of U.S. respondents and 71 percent of European respondents intending to increase spending on SaaS.
Seventy-seven percent of respondents expected to increase spending on SaaS, while 17 percent plan to keep spending the same.
Respondents picked customer relationship management (CRM) and enterprise content management (ECM) as the applications most often being newly deployed. Supply chain management (SCM), Web conferencing, teaming platforms and social were the applications picked most as replacements for on-premises solutions.
The decision to deploy SaaS-based applications within an enterprise is dependent on the business-criticality of the solution, as well as geography, business agility, usage scenario and IT architecture. Few organizations will completely migrate to SaaS. These organizations will live with a mix of SaaS and traditional on-premises application deployment models with a focus on integration and migration between different deployment models.
The adoption of the on-demand deployment model has grown for more than a decade, but its popularity has increased significantly within the past five years. Initial concerns about security, response time and service availability have diminished for many organizations as SaaS business and computing models have matured and adoption has become more widespread.
The Gartner survey showed 71 percent of organizations have been using SaaS for less than three years.
Brazil had the largest number of new users, with 27 percent of respondents using SaaS for less than one year.
Implementing net new solutions or replacing existing solutions is now the primary driver for using SaaS, according to the survey. Worldwide, there is a shift in SaaS adoption from primarily extensions to existing applications to net new deployments or replacements of existing on-premises applications.