SaaS On the Upswing Among SMBs

The number of SMBs using software as a service (SaaS) in 2007 doubled over 2004, according to new research from AMI-Partners.Across the board, midsize businesses spend an average of six times more than small businesses on SaaS annually, and are twice as likely to report a planned increase in SaaS spending for the next 12 months, the 2008 U.S. Small and Medium Business Applications & Solutions Market Overview report states. In 2007, 21 percent of small businesses and 31 percent of midsize businesses used SaaS, which offers a cost-effective alternative to buying and supporting pricey hardware and software solutions.

Among small businesses, the most popular SaaS apps were banking/finance, instant messaging and payroll processing; among midsize companies, they were payroll processing, banking/finance and human resources management, according to AMI-Partners.Redmond