SaaS Increasing Data Center Demand

Data Center Journal Reports SaaS Demand is Pushing Demand for Data Center Space

If SaaS or cloud computing are the solution for companies to reduce their IT requirements as well as data center space then the IT and space that is lost at the corporate level must be compensated for by the cloud or SaaS provider. This is the opportunity for many cloud and software as a service providers are now facing. Those companies that have planned for the cloud have already begun to expand and build new facilities.

One needs to only conduct a short search on the internet to find the news reports about companies expanding their data center needs to compensate for SaaS or the cloud.

Companies such as Microsoft and Oracle all have joined the ranks of software vendors building new data centers to support cloud computing.

Software as a Service is an alternative deployment method to on-premise software. Organizations pay a subscription-based fee to a vendor who manages their processes and data in an off-site data center. This yields several benefits, including predictable costs, a non-capital expenditure and typically no addition of IT resources. Also, SaaS-deployed software is up and running much quicker than on-premise options, a point that is especially important to businesses that demand more immediate results. All of these facets make SaaS very appealing to today’s businesses, as it is a more budget-friendly way to gain efficiency in the current economic downturn.

If the future consists of  IT’s role evolving away from building data centers, selecting & buying servers, purchasing infrastructure software, developing custom applications, and learning how to install/configure/manage/monitor/optimize then SaaS and cloud providers could become the driving purchasers of equipment and builders of data centers.

What is clear is that SaaS and other cloud services are growing in popularity and we stand to see more companies expanding their data centers as time moves forward.