Cost cutting pushes firms into hosted software, 7global report finds, security issues send them scurrying

Cutting IT spend is the main reason for firms to evaluate or implement software as a service, according to new research from managed services specialist 7global. However, businesses are still concerned about the security risks associated with the hosted model.

The potential to reduce IT costs was cited by 52 percent of respondents as the main reason for implementing software as a service. However, the study also highlighted the various barriers to using on-demand software, with the biggest being firms’ concerns over the security of data held outside of the business and loss of ownership.

According to the 234 UK firms surveyed, the main application being used or considered as a service is email and messaging management. Accounting, payroll and CRM were the next most popular areas for hosted applications.

However, while these were the most popular on-demand applications, respondents cited web conferencing as the software that is currently most widely available on a hosted basis.