SaaS apps vital for cloud computing

Cloud computing is growing at a rapid rate, with companies looking to cut data storage costs while increasing efficiency. Because of this, Software-as-a-Service is becoming increasingly popular with companies looking to explore cloud computing for the first time.

According to a recent survey by Bloomberg, between one-third and one-half of large companies will use SaaS for human resources, finances, sales and other operational applications.

More than 1,000 business executives from around the world responded to the survey.

According to the survey, SaaS is particularly important for U.S. companies. American firms are significantly more likely than European firms to switch to SaaS providers for applications. Some 56 percent of American respondents said they intend to switch to SaaS for benefits administration within two years. Another 50 percent intend to do so for recruitment, while 47 percent wish to to use SaaS for payroll.

European companies are more likely to switch to SaaS for treasury and customer service related functions.

If the survey results hold true, Larry Marion of Datamation believes the IT departments and data centers will undergo a rapid shift in the next few years as companies switch to cloud computing.