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Enterprise SaaS to double in five years

Software as a Service, while growing, is suffering from perceptions of security and compliance issues.

Software as a Service, while growing, is suffering from perceptions of security and compliance issues.

A new report from Juniper Research forecasts that revenues generated from enterprise Software-as-a-Service will reach $53.5bn in 2018, representing 59% of the enterprise public cloud computing market, rising from $23.2bn in 2013.

Software-as-a-Service will remain the dominant cloud model, it says, though Platform and Infrastructure models are growing. This is due in part to the relative maturity and widespread acceptance of the model, as well as recognition of the comparative benefits and risks of commissioning cloud-based software. However, it argues that enterprise take-up of PaaS and IaaS solutions has been adversely impacted by concerns over data security, compliance and portability.

Nevertheless, the report found, both PaaS and IaaS will experience significant growth over the forecast period as new applications, developed specifically for the cloud to harness workloads such as big data analysis, benefit from the PaaS 'fast-track' model.

Service providers are increasingly providing multi-lingual support, and improving portability through initiatives such as Cloud Foundry, while consolidation of PaaS as an extension of other cloud services is showing a rising trend.

Meanwhile, IaaS is becoming increasingly attractive to SMBs (small-to-medium-sized businesses) and enterprises alike owing to a high level of control over the software stack and security implementation, alongside a growing understanding of the need for proper risk assessment.

It concludes that due diligence is essential for potential customers to establish if, and what services can be deployed in the cloud.