A tightening of capital budgets has encouraged more companies to go for hosted options, as they look to move spending into operational expenditure.
Gartner has estimated that the enterprise application software will expand to more than £75bn (£77.32bn) this year – an increase of 4.5 per cent on 2011. Much of the spending is poised to go on upgrades to established mission-critical software and integrating systems.
Tom Eid, vice-president of research at Gartner notes that "after more than a decade of [software-as-a-service] and cloud service use, adoption continues to grow and evolve within the enterprise application markets."
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