Hosted applications delivered over the Internet, commonly called "software-as-a-service," are rapidly gaining popularity with customers in small and large businesses, as well as with consumers. By 2010, this form of delivery is estimated to comprise 23 percent of the $120 billion U.S. software market, according to a recent report by RBC Capital Markets.
What accounts for this growth? Software-as-a-service (SaaS) offers several advantages compared with buying traditional software licenses. Here are some of the most compelling:
With all these advantages, it's easy to see why software-as-a-service is growing so quickly. These days, most IT departments face constant demands to provide more functionality without increasing infrastructure or staff. When IT management and staff feel squeezed—using hosted software is one way to ease the pressure.