SaaS continues to dominate public cloud services market

Tuesday, 09 July, 2019

SaaS continues to dominate public cloud services market

Software as a service (SaaS) has continued to dominate Australia’s public cloud services market, earning 65.8% of the market's $4.01 billion revenue in 2018, according to the International Data Corporation (IDC).

Currently, around 58% of Australian organisations have implemented a SaaS solution.

IDC ANZ IT Services' Market Analyst, Chayse Gorton, said: "Australian organisations are seeking solutions to remain competitive in today's digital economy. The high percentage of SaaS revenue reflects that SaaS solutions fit the bill."

IDC added that SaaS solutions are attractive because they give organisations access to the latest technologies while reducing the internal resources needed to manage the software, which is maintained by the solution provider.

Data security and brand trust also drive SaaS adoption.

Despite this, IDC found that 13% of Australian organisations currently aren't interested in deploying SaaS solutions because of the investment they've already poured into legacy applications.

"Rather than making a jump to SaaS, Australian organisations often wait until existing applications come to the end of their life," Gorton said.

Additionally, SaaS applications often require complex integrations with existing software to avoid information siloes across the cloud and business, making it difficult to adopt quickly or cheaply.

IDC expects that, over time, SaaS will replace custom applications as organisations recognise SaaS's ability to boost market competition while maintaining data security.

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