The growing value of software as a service (SaaS) to businesses has been highlighted once again by a prominent media organisation.

In an article for the BBC, business editor Tim Weber claims that cloud computing and SaaS is going ‘mainstream’ and that organisations are seeing it as a way of cutting their capital expenditure.

Mr Weber also lays out the main reasons for the popularity of SaaS, including the cost-effectiveness, the scalability, mobility and the fact that services are always kept up to date.

The author adds: “Cloud computing can be applied nearly anywhere - the small retailer that needs a secure e-commerce website quickly and cheaply, the ferry operator that has huge computing spikes in May and June while 90 per cent of its IT system idle the rest of the year or the fire service that needs extra computing power to predict the movement of forest fires during the summer.”

Businesses reluctant about adopting SaaS were recently advised to dip their feet in the water first by trying non-critical services.

The findings of a new survey by Microsoft suggests the number of small and medium-sized businesses (SMB) using software as a service (SaaS) is continuing to rise.

According to the company’s second annual Microsoft SMB/Partner Insight Report, 12 per cent of SMBs now use SaaS solutions, compared to ten per cent a year ago.

It is also predicted by the firm’s partners that, by the end of this year, 19 per cent of these businesses will have at least some sort of solution in place.

Birger Steen, vice president of small and medium business at Microsoft, said: “The most competitive SMBs are investing in IT that will not only help protect and strengthen their business, but prepare them for success when economic conditions improve.”

Forrester Research recently reported that the global IT market will grow by 7.7 per cent this year, partly driven by SaaS.

Businesses are  benefitting from cloud-based solutions which allow them to “do more for less”.SaaS expert Martino Corbelli explained why such solutions could appeal to enterprises.

A number of studies in recent months have shown that many businesses are considering SaaS for at least some of their IT needs.
One of these studies, conducted by Mimecast, found that 62 per cent of IT decision makers in the US and Canada are giving it careful consideration, with the technology, financial and legal sectors most likely to adopt it.

He said: “Cloud services mean that businesses are able to get the benefits of familiar applications but without the hassle and cost of managing the hardware, software licensing, upgrades and maintenance themselves.

“The continuing difficult financial landscape has meant that businesses have been tasked to do more with less and IT departments are under additional scrutiny to demonstrate the value they provide to the business.”

Mr Corbelli also pointed out that the need for refreshing hardware and software is eliminated by SaaS.