SaaS and Cloud spending

Brenon Daly, Research Director

Software spending

How would you characterize your company’s spending plans for software over the next 90 days compared to the previous 90 days?

Apr. 2006

July 2006

Oct. 2006

Jan. 2007

Apr. 2007

July 2007

Oct. 2007

Jan. 2008

Apr. 2008

July 2008

Oct. 2008

Jan. 2009

Apr. 2009

July 2009

Oct. 2009

Jan. 2010

Apr. 2010

July 2010

Oct. 2010

Jan. 2011

Apr. 2011

July 2011

Oct. 2011

Jan. 2012

Apr. 2012

July 2012

Oct. 2012

Jan. 2013

Apr. 2013

July 2013

Oct. 2013

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

7%

15%15%

9%10%

14%14%

22%25%

25%

40%39%

26%22%

18%15%

13%18%

20%

13%

16%20%

23%

17%

17%20%

23%

18%16%

17%

22%

27%

18%

17%

26%22%

18%

18%

16%

12%

12%

8%9%11%

12%

16%

18%20% 14% 14%

21%

16%12%12%

15%17%

23%

14%15%15%14%

15%

Spending less Spending more

Source: ChangeWave Research, a 451 Research subsidiary

Cloud spending

Projected cloud computing spending – next six monthsOctober 2013

Increase spending Remain the same Decrease spending0%5%

10%15%20%25%30%35%40%45%50%

32%

45%

1%

23%

29%

2%

15%

33%

3%

Software as a Service (SaaS) Infrastructure as a Service (IaaS) Platform as a Service (PaaS)

Source: ChangeWave Research, a 451 Research subsidiary

SaaS applications

Q. When buying SaaS applications, does your organization typically use:

Overall Very large (5,000+

employees)

Age of organization

25+ years

Early adopters

0%10%20%30%40%50%60%70%80%90%

100%

0.6250.758 0.702

0.489

0.3750.242 0.298

0.511

Software HAVE used previously on-premiseNew software HAVE NOT used previously on-premise

n=1334

Two-thirds of SaaS customers use software online that they had previously installed on-premises

Software loyalty and brand recognition matter, particularly for very large organizations where software migration is far-reaching and expensive

Cloud spending

What impact is public cloud spending having on overall IT budget?

30%

15%45%

10%

DecreasingIncreasingNo effectDon't know / NA