Report: SaaS spending to grow 112 percent by 2014

According to a recent In-Stat report, spending on public cloud Software-as-a-Service will increase during the next several years by as much as 112 percent by 2014. In-Stat's research states small offices and home businesses will lead this charge.

As more companies across all sectors realize the potential of cloud computing as a managed IT service, the more attractive cloud-based applications will become. While spending is expected to increase, the move toward the cloud will be cost-effective for many companies, as it offers scalability and enhanced efficiency for most.

"Spending is expected to grow significantly across all service options of cloud computing, including IaaS and PaaS," said Greg Potter, a research analyst at In-Stat. "But since SaaS is the largest segment volume-wise, its growth will be the most dramatic. Within SaaS, the professional services and healthcare verticals will see the largest growth in spending, each growing over 30 percent during the forecast period."

Further In-Stat research showed IaaS spending will grow to $4 billion by 2014, while PaaS spending will increase 113 percent to reach $460 million by the same year.

In a similar recent report, IDC predicted worldwide IT spending on the cloud will reach $44.2 billion by 2013.