SaaS App Use Up 33 Percent Over Last Year, BetterCloud Says

SaaS App Use Up 33 Percent Over Last Year, BetterCloud Says

The increase, according to BetterCloud, is driven by companies which operate a “SaaS-Powered Workplace.” 

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The average company uses 16 SaaS apps, up 33 percent from a year ago, according to BetterCloud's 2017 State of the SaaS-Powered Workplace Report. By 2020, nearly three in four respondents said that 80 percent or more of their apps will be SaaS-based.

The increase, according to BetterCloud, is driven by companies which operate a “SaaS-Powered Workplace.” Almost all apps used by this 38 percent of companies are SaaS, an average of 34 each. This approach results in fewer emails, fewer meetings, and higher customer satisfaction, according to the report.

“SaaS is a double-edged sword,” BetterCloud founder and CEO David Politis said in a post on the report. “And while it brings incredible benefits, it also creates formidable challenges that are taking the roles and responsibilities of IT to new extremes.”

See also: Two-Thirds of Companies Lack Overall Cybersecurity Policy

Forty-four percent of SMBs say that 80 percent of their apps will be SaaS this year, compared to 29 percent of middle-market companies and enterprises. That gap, however, is expected to disappear by 2022, as the two groups converge at 80 percent SaaS-Powered Workplaces.

The report also suggests that SaaS adoption has “come full circle,” with IT retaking control of SaaS use in the enterprise, after shadow IT SaaS adoption pushed applications beyond on-premise software run by the IT department. The process is ongoing, however, as just 62 percent of apps in SaaS-Powered Workplaces are managed by IT.

SaaS-Powered Workplaces are 3.5 times more likely than other businesses to consider delegating admin privileges a challenge, and almost 3 times as likely to consider managing external access a challenge. To adapt, the report says, CIOs and IT teams must rethink roles, responsibilities, processes, and budgets, while working closely with business units to balance the needs for continued SaaS adoption and control over IT environments.

One of the issues demanding IT department control over SaaS use is network performance, according to a report on Office 365 deployments released Thursday by Zscaler.

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