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Enterprise SaaS Adoption Almost Doubles in 2011: Yankee Group Survey

By Rajani Baburajan
TMCnet Contributor

Enterprises are moving to the cloud, according to Yankee Group’s (News - Alert) 2011 US FastView: Cloud Computing Survey.

Approximately 48 percent of the respondents said remote/mobile user connectivity is driving the enterprises to deploy software as a service (SaaS (News - Alert)). This is significant as there is a 92 percent increase over 2010.

Around 38 percent of enterprises project the deployment of over half of their software applications on a cloud platform within three years compared to 11 percent today, Yankee Group said in its “2011 Fast View Survey: Cloud Computing Motivations Evolve to Mobility and Productivity.”

“Mobility is the driving force to cloud adoption,” said George Hamilton, Yankee Group principal analyst and author of the report, in a statement.

“Despite worries that the cloud reality would not match the media hype, we’re seeing enterprises raise their spending and set their sights on cloud and mobile productivity,” Hamilton added.

According to the survey, cloud adoption is up across the board, with private cloud still most widely deployed (63 percent) but public cloud and managed public cloud making gains (58 percent and 51 percent, respectively).

In 2011, 41 percent of very large enterprises (more than 10,000 employees) already deployed or are considering deployment of platform as a service (PaaS) within the next 12 months, compared to just 32 percent in 2010.

Around 75 percent of respondents agree that consumer apps put pressure on IT to make enterprise applications more like consumer applications.

Recently, AMI-Partners said that small and medium business spending in the U.S. on SaaS will increase significantly during the next five years, eclipsing growth in investments in on-premise software by a significant margin.