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Saturday, March 01, 2008

Hosted Business Technology as a Service

Growth of hosted business technology services, specifically hosted applications, or software as a service (SaaS) -- as well as other services provisioned by a third-party provider -- are driving steady U.S. managed services revenue growth.

According to In-Stat, research has shown that a majority of various business functions like security, storage, and other related processes are still performed in-house by a majority of firms, but the increasing complexity of running a business network is leading to steady revenue growth for managed network and infrastructure services in the U.S. market.

Steadily increasing demand for these third-party services and the more rapid growth in demand for hosted application services will lead to 7 percent overall U.S. revenue growth of managed services through 2012.

The In-Stat report provides an updated managed services forecast through 2012 based on recently updated U.S. census information.

Also available is survey data that provides an overview of what the U.S. managed services landscape could look like by early 2009 for ten business functions from Web and application hosting to network security. Survey data highlighting demand for on-demand computing -- also known as utility computing -- services is presented separately as well.

As SaaS has become such an important topic for all providers in the managed services space, In-Stat's 2008 managed services research will focus exclusively on demand for various business technology management applications such as CRM, ERP, etc. -- delivered as a service.

A steady flow of SaaS survey-related research will become available from In-Stat throughout the year, beginning in late spring 2008.