New InformationWeek Analytics Research Finds 60% of Companies Using Applications in the Cloud

26% say the apps they purchase as services are mission critical, down 8 points from a year ago.

Apr 19, 2011

SAN FRANCISCO, April 19, 2011 /PRNewswire/ -- InformationWeek Analytics, the leading service for peer-based IT research and analysis, today announced the release of its latest research report; SaaS 2011 which explores the state of software as a service, a technology being adopted at unprecedented rates. The 275 respondents to this exclusive survey are business technology decision-makers involved in their companies' enterprise applications strategies. The report author, Michael Biddick, is president and CTO of Fusion PPT.

Research Summary:

SaaS adoption is up 13 points over last year, to 60%, despite lingering concerns about features and functionality. More than one-quarter of survey respondents say the applications they have delivered as services are mission critical, down from 34%. Meanwhile, startups and niche SaaS providers are going up against established vendors like Microsoft, Google and, giving smaller businesses opportunities to take advantage of the burgeoning technology.


  • SaaS use among companies surveyed jumped to 60% from 47% last year.
  • Speed to implement, capex savings and opex savings are the biggest drivers behind the move to a SaaS model.
  • Top reasons 40% of companies don't use SaaS: lack of business requirement, concerns over security and concerns over data ownership.
  • SaaS satisfaction levels dipped 11 points, to 74%; still, only 14% say their app services don't meet expectations.
  • Twenty-six percent of respondents rate their SaaS-delivered apps "mission-critical," down from 34% a year ago; they rate 61% "important," vs. 51% last year.
  • CRM (44%), Web presence (38%) and email (35%) are the most common SaaS apps, followed closely by HR/recruiting (33%) and sales (32%).
  • Microsoft (34%, up 8 points), (30%, down 11 points) and Google (26%, down 2 points) still garner the bulk of the market, but ADP (18%, up 15 points), IBM (16%, up 14 points) and EMC (15%, up 7 points) have gained ground, and smaller companies abound. Oracle dropped 11 points, to 15%.
  • The split between companies using customized SaaS apps and those using standard SaaS apps: 50/50.

For full access to the research data, members can download now:

"It's getting harder for SaaS vendors to maintain quality levels, because they have to provide both standard and custom services for different companies," says Lorna Garey, content director of InformationWeek Analytics. "Most IT pros tell us they're happy to outsource apps so they have time to focus on content development and other projects, but they still work closely with the vendors to manage service contracts and processes--they don't just relinquish control for reliability and security, for instance."

InformationWeek Analytics is a subscription-based service, offering peer-based technology research. Its site currently houses more than 900 reports and briefs, and includes a dedicated area where technology professionals can access complete issues of InformationWeek Magazine. More than one hundred new reports are slated for release in 2011. InformationWeek Analytics members have access to:

  • The full InformationWeek Analytics library of reports
  • Peer based research and analysis to guide buying and implementing decisions
  • Over 20 technology and IT business categories
  • New reports launched every week
  • Signature reports, such as the InformationWeek Salary Survey, InformationWeek 500 and the State of Security report

For more information on our membership programs please visit:

About InformationWeek Business Technology Network (

The InformationWeek Business Technology Network provides IT executives with unique analysis and tools that parallel their work flow--from defining and framing objectives through to the evaluation and recommendation of solutions. Anchored by InformationWeek, the multimedia powerhouse that looks across the enterprise, the network scales across the most critical technology categories with online properties like (security), (networking and communications) and (cloud computing). The network also provides focused content for key IT targets, such as CIOs, developers, and SMBs via InformationWeek Global CIO, Dr. Dobb's and InformationWeek SMB, as well as vital vertical industries with InformationWeek Financial Services, Government, and Healthcare resources. Content is at the nucleus of our information distribution strategy--IT professionals turn to our experts and communities to stay informed, get advice and research technologies to make strategic business decisions.

About UBM TechWeb (

UBM TechWeb, the global leader in technology media and professional information, enables people and organizations to harness the transformative power of technology. Through its three core businesses – media solutions, marketing services and paid content – UBM TechWeb produces the most respected and consumed brands and media applications in the technology market. More than 14.5 million business and technology professionals (CIOs and IT managers, Web & Digital professionals, Software Developers, Government decision makers, and Telecom providers) actively engage in UBM TechWeb's communities and information resources monthly. UBM TechWeb brands includes: global face-to-face events such as Interop, Web 2.0, Black Hat and Enterprise Connect; award-winning online resources such as InformationWeek, Light Reading, and Network Computing; and market-leading magazines InformationWeek, Wall Street & Technology, and Advanced Trading. UBM TechWeb is a UBM company, a global provider of news distribution and specialist information services with a market capitalization of more than $2.5 billion.


Art Wittmann

VP & Managing Director InformationWeek Analytics