Hosted services will lead to a rise in the number of virtual businesses where the majority of functions are outsourced by the year 2020, according to a report conducted by the Social Issues Research Centre (SIRC) and commissioned by international Web and application hosting company, Rackspace Managed Hosting.
The report forecasts that small and medium-sized businesses will be the prime drivers for the shift toward outsourced business services both as early providers and adopters of hosted software services.
Current developments in bespoke software services are also likely to have gained widespread use by 2020, with collaborative browser-based user interfaces being the norm, particularly in smaller and medium-sized businesses.
Dr Peter Marsh of the SIRC said: "For businesses, software as a service (SaaS), accessed over the Internet, will be the norm, versus purchasing software programs that reside on site. This will involve outsourcing and streamlining everything from video conferencing to supply chain management.
"Currently, many businesses are opting for SaaS providers to implement customer relationship management (CRM) solutions, but 2020 will see SaaS solutions across a range of business areas - supply chain management, financial management, sourcing and procurement management and product lifestyle management."
A recent survey conducted by Rackspace has already provided support for the predictions made in the SIRC paper. The survey* of Rackspace customers found that 51% already use SaaS applications with 72% of those considering additional SaaS applications. It was also revealed that 69% of respondents believe SaaS is the delivery method of the future.
Jacques Greyling, managing director of Rackspace managed Hosting EMEA, said: "We are hosting an increasing number of SaaS providers who are able to take advantage of the fact that more businesses are providing mobile devices to their workforce, thereby ensuring that users can access data and systems remotely.
"For the SaaS providers and their end-users, the reliability, robustness and security of the hosting provider is critical. It is vital that the industry meets the expectations of SaaS providers and users in order to ensure that the full benefits of this approach can be realised as illustrated in this report."
Rackspace, which provides Web and application hosting services to more than 80 South African companies, already hosts a growing number of software services for its SMB customers including Atlantic Global, provider of online project management solutions, Thompson Online, an online benefits management system for employers, and Sunergeo, the provider of online corporate management and events software.
*The survey for Rackspace was carried out online by ClickTools, a third-party research tool, among a sample of approximately 400 Rackspace customers. Detailed information and the full survey report can be found at: www.rackspace.com/downloads/surveys/saassurvey.pdf
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A recognised leader in the global managed hosting market, Rackspace Managed Hosting is a world-class service organisation delivering enterprise-level Web infrastructure and managed services to businesses of all sizes.
Serving more than 12 000 customers across six data centres worldwide, including South Africa, Rackspace integrates the industry's best technologies for each customer's need backed by a 100% network uptime guarantee. Founded in 1998, the company has received numerous awards for its brand of customer service known as Fanatical Support. Rackspace is a Microsoft Gold Partner and Microsoft Hosting Solutions Service Provider of the Year as well as the only Red Hat certified Advanced Hosting Partner in Europe. For more information, visit www.rackspace.co.za or call (0800) 085 3973.
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