Winds of Change Will Catalyze Big Shift to SaaS and Virtualization

Struggling economies bring challenges, but also opportunities. The IT world is ripe for a major shift, for three reasons:

  • Economic concerns are driving IT departments to aggressively increase efficiency and reduce cost.
  • Vendors have built vast SaaS infrastructures to enable outsourced messaging, collaboration, applications, and compliance solutions at a fixed cost (examples: Microsoft, Google, IBM, Amazon, Iron Mountain, LiveOffice).
  • Server virtualization technologies — from Microsoft, Sun, VMWare, and in Linux distributions — have matured to the point where highly available, high-volume, and complex applications can be efficiently virtualized, at a savings of cost, space, administrative overhead, and energy consumption.

The state of the economy will have a catalytic effect on customer adoption of and migration to SaaS and virtual environments over the coming two years. Within the next three to five years, hosters will start using a combination of multitenancy and virtualization, to offer an always-on, always-available set of solutions to customers over the Internet.

Thus the state of the economy will greatly encourage customers to migrate to SaaS/cloud and virtual environments.

David Sengupta, with Richi Jennings

One Comment

  1. Posted November 26, 2008 at 5:15 AM | Permalink

    Excellent post/synopsos David/Richi.

    Regards/Rob

  2. Ronan
    Posted November 26, 2008 at 6:49 AM | Permalink

    We currently see an adoption rate of 50% of customers using our SpamTitan virtual appliance offering as opposed to an ISO/dedicated appliance. Those using it continually comment on the additional low cost functionality derived by use of a virtual appliance, specificially relating to back up and redundency.

  3. Posted November 26, 2008 at 10:44 AM | Permalink

    This is a great post, David. We are witnessing this first-hand in our business as a number of customers are coming to us to help them save money and refocus resources internally. I have a few more thoughts at:
    http://blog.liveoffice.com/blog/bid/6895/The-cloud-s-silver-lining

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