In-Stat Reports on SaaS

SCOTTSDALE, Ariz. -- Growth of hosted services, specifically hosted applications, or SaaS (software as a service), as well as other services provisioned by a third-party provider, are driving steady US managed services revenue growth, reports In-Stat (http://www.in-stat.com). As most business functions are still performed in-house by a majority of firms, out-tasking the management of the network and related infrastructure may still be considered a trend.” The hosted application model, however, is closing in on becoming a “paradigm,” the high-tech market research firm says.

“Though business decision-makers have indicated that they plan to out-task major business functions like security, storage, phone system management, et al, at a moderate pace, adoption of third-party application hosting is the fastest growing area in managed services,” says Jeff Jernigan, In-Stat analyst. “The on-demand hosted application model has seen acceptance in the small-to-medium business market, and now demand is rising among enterprise-sized firms. The on-demand model will also hasten adoption of utility computing services.”

In-Stat